Byju’s Raveendran Secured from Removal Amidst Investor Dispute
A ruling from a Karnataka court has safeguarded Byju’s CEO, Byju Raveendran, from potential removal following an extraordinary general meeting (EGM) called by investors. The court stated that any resolutions made during this EGM would be considered invalid. Byju’s confirmed that decisions made during this meeting would not hold weight until the court concludes its hearings on the investors’ petition.
This ruling effectively shields Raveendran from being ousted as CEO and prevents investors from voting to remove Divya Gokulnath and Riju Raveendran from the board of directors. Byju’s has faced various challenges since early 2023, including resignations from auditors, bankruptcy proceedings initiated by lenders against a holding company, and a U.S. lawsuit disputing loan terms and repayment.
Byju’s alleged that certain investors, including General Atlantic, Peak XV (formerly Sequoia Capital India), and the Chan Zuckerberg Initiative, violated their shareholders’ agreement by convening the EGM on February 23. Byju’s argued before the Karnataka court that these investors were disrupting operations by withholding urgently needed funding.
In response to a petition by Think & Learn Pvt Ltd, the parent company of Byju’s, the Karnataka High Court ordered that resolutions proposed during the February 23 EGM be deemed invalid until a final ruling on the petition. Despite this decision, investors who seek Raveendran’s removal plan to proceed with the EGM.
Sources close to the investors clarified that the court’s ruling did not invalidate the resolutions, indicating that the EGM would proceed as planned, including a vote on Raveendran’s removal as CEO.
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