Key shareholders of Byju’s call for EGM, want CEO to quit
A consortium of key shareholders, holding over 30 per cent stake in Byju’s, on Thursday, issued a notice to the embattled edtech firm, calling for an extraordinary general meeting (EGM) to address “persistent issues”, including a proposed change of management at the firm. These shareholders will vote in an attempt to alter the company’s existing board, which includes asking Byju Raveendran to step down as chief executive officer (CEO) and relinquish his operational role at the firm, sources said.
“This is a fallout of what has been happening at the company over the past two years, including lack of transparency and trust, and incomplete audits,” said a person familiar with the matter. “Investors don’t want him (Raveendran) to quit. He has his strengths. But these shareholders want him to step aside from the operational role.”
An email query to Byju’s remained unanswered.
In accordance with the rights granted to shareholders under the Companies Act, 2013, a notice was issued to Byju’s parent firm, Think & Learn Private Limited (T&L), requesting an
EGM to address persistent issues relating to corporate governance, mismanagement, and compliance. This request is supported by a consortium of T&L shareholders and follows earlier notices of requisition sent to the T&L board of directors in July and December 2023.
“The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement, and compliance issues; the reconstitution of the board of directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the company,” the investor group said on Thursday.
The current board of Byju's parent, Think and Learn, include Raveendran, his wife and Byju's co-founder Divya Gokulnath, and his brother Riju Ravindran.
Investors have been urging Byju Raveendran to step aside from the operational role. However, this is the first time that a section of shareholders has formed such a group and issued a statement seeking to change the management. They said they have been flagging the persistent issues since the resignation from the Board in June 2023 of directors nominated by Prosus and some other shareholders.