Following a protracted Zoom conference that spanned several hours, prominent stakeholders of the beleaguered educational technology (ed-tech) firm Byju convened to cast their votes, resulting in the removal of the company's founder, Byju Raveendran, from his role as chief executive officer (CEO).
As reported by Bloomberg, the Extraordinary General Meeting (EGM), orchestrated by key Byju investors, encountered delays due to disruptions orchestrated by numerous employees of the tech establishment, as recounted by two individuals present during the proceedings.
Instances of interruptions, including whistles and other cacophonous disturbances, peppered the meeting, prolonging the deliberations. Ultimately, over 60 percent of the investors, including Prosus NV and Peak XV Partners, advocated for Raveendran’s ouster, citing concerns of mismanagement and other operational challenges confronting the tech enterprise.
Prosus, in a statement, corroborated the shareholder endorsement of all proposed resolutions. This development marks a significant setback for Raveendran, once lauded as an exemplar of India’s ed-tech domain, as the investors also voted for removing his family members from executive positions within the company.
Byju, however, has contested the outcomes of the EGM, rejecting the resolutions adopted by the investors, including the decision to depose Raveendran from the board. According to a statement quoted in Bloomberg, the company deems the resolutions null and void, asserting that the EGM was attended by only a limited group of shareholders, thus rendering the outcomes inconsequential.
About the subsequent course of action, although the major investors have endorsed the removal of Byju Raveendran as CEO, any tangible changes will be deferred until March 13, as Raveendran had filed a petition challenging the investors’ decision to convene the EGM.
Recently, the Karnataka High Court ruled that any resolutions endorsed during the EGM would be suspended until the next hearing, refraining from halting the proceedings altogether.
In anticipation of the EGM’s outcome, Byju's had preemptively issued a statement, discrediting the ratified resolutions as "invalid and non-binding," and expressing firm conviction in the legal sanctity of their position.
The forthcoming verdict on March 13 will thus determine the trajectory of Byju Raveendran and his family within the tech enterprise, amidst the prevailing legal imbroglio.
