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Byju's Investors To Vote On Board Ouster In Friday Meeting: Report

The extraordinary meeting, expected to convene on Friday, will see the company's major shareholders voting to remove Byju Raveendran, Divya Gokulnath, and Riju Ravindran from the board of Think & Learn.

Byju's Investors To Vote On Board Ouster In Friday Meeting: Report

Outlook Start-Up Desk

POSTED ON February 19, 2024 11:03 AM

Investors versus Byju Raveendran's tussle is intensifying day by day. Week after investors expressed their displeasure and conveyed that Byju's founder resigned from the board of Think & Learn, shareholders are expected to gather for a special meeting on Friday.   

A group of investors wants to remove all three members of the edtech, comprised of Raveendran, his wife Divya Gokulnath, and his brother Riju Ravindran, The Times of India reported.   

According to the report, the resolution is expected to pass in favor of investors.   

Raveendran and his family are the largest shareholders in the company with a 26 percent stake. On the other hand, the investors who have given notice hold a 25 percent stake in the company, but they will not participate in the meeting because they have no voting rights, as they have signed a shareholder agreement that excludes such rights.   

The rules mandate the presence of two members to establish a quorum at the extraordinary meeting (EGM). Byju's articles of association specifically require the attendance of its promoter-director at the EGM; if the individual is absent, the meeting can be postponed for a week. At the rescheduled EGM, even without the promoter-director, the shareholders in attendance can constitute the quorum.   

Other than the two groups mentioned above, other investors own 45 percent of the company, and the remaining shareholders have stakes in single digits. 

Investors have been concerned about governance, financial management, and compliance issues. Earlier this month, in response to the notice given by the company's major shareholders for the removal of Raveendran, the company said that the shareholders' agreement does not give them the right to vote on the CEO or management change.   

The company stated, "Think & Learn Private Limited, the parent of BYJU’S, has noted with sorrow statements from a select few investors calling for an extraordinary general meeting (EGM) to replace founder and group CEO Byju Raveendran. Under these unfortunate circumstances, we would emphasize that the shareholders' agreement does not give them the right to vote on CEO or management change.”   

Major shareholders such as General Atlantic, Prosus Ventures, Peak XV, and Chan Zuckerberg have written a letter to the company expressing the need for a board change. 

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