Business Standard

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.

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