Major investors of embattled edtech firm Byju’s voted to oust founder Byju Raveendran as the chief executive officer (CEO) on Friday after a Zoom call that lasted for hours.
The proceedings of the Extraordinary General Meeting (EGM), called by major investors of Byju’s, faced delays as several employees of the edtech firm tried to disrupt proceedings, reported Bloomberg news quoting two people who attended.
It was reported that on multiple occasions during the meeting, unidentified participants attempted to disrupt the proceedings by using whistles and other loud noises.
Over 60 per cent of the investors voted for Raveendran’s ouster at the EGM, including Prosus NV and Peak XV Partners, citing mismanagement and other challenges at the edtech company.
Prosus released a statement to confirm that the shareholders passed all the resolutions put forward for a vote. The development comes as a huge blow to the man who was once considered a poster boy of India’s edtech sector.
Not just Raveendran but they also voted to remove his family members from leadership positions at the company.
Byju’s rejects EGM outcome
Byju’s has rejected the resolutions passed by investors during the EGM, including the decision to remove Raveendran from the board of the company.
“The resolutions passed during the recently concluded extraordinary general meeting – attended by a small cohort of select shareholders – are invalid and ineffective,” according to the company statement quoted in a Bloomberg report.
Neither Byju Raveendran nor his family attended the EGM, which they deemed “invalid”.
What happens next?
While major investors have voted for the removal of Byju Raveendran as CEO of the company, it will remain on hold until March 13 as Byju Raveendran had filed a petition against the decision of investors to call for the EGM.
On Wednesday, the Karnataka High Court ruled that any resolutions passed during the EGM would be suspended till the next hearing, but declined to halt proceedings.
Anticipating the outcome of the EGM, Byju’s had already issued a statement.
“The resolutions ratified during the recently held EGM — which saw participation from a select group of shareholders — stand as invalid and non-binding,” Byju’s said.
“The company strongly believes that the enactment of these unenforceable resolutions represents, at best, a challenge to the rule of law,” the company added.
As the situation stands, the fate of Byju Raveendran and his family would depend on the court’s verdict on March 13.
