NEW DELHI: Byju’s shareholders, including Prosus and Peak XV Partners, voted to oust its founder and CEO Byju Raveendran on Friday, Prosus said in a statement. However, CEO Raveendran, his wife and brother, did not attend the meeting.
Prosus, which has a 9.6% stake in Byju’s, said that shareholders unanimously passed resolutions at EGM, which includes reconstitution of board and change in leadership.
Byju’s in response to EGM said that any decisions made are invalid and ineffective, stating that they did not comply with the company’s internal laws, which require at least one founder-director to be present to establish a valid quorum.
Byju’s said, “As the founders did not participate in the meeting, the quorum was never legitimately established, rendering the resolutions null and void.”
Byju’s had requested intervention from Karnataka State High Court before shareholder meeting. The court ruled on Wednesday that any resolutions passed by shareholders would not apply until a further hearing on March 13.
However, Investors have decided to present the decisions from EGM to the Karnataka court.
“As shareholders and significant investors, we are confident in our position on the validity of the EGM meeting and its decisive outcome,” Prosus said.
The edtech startup lately suffered many setbacks, including decline in valuation and resignation of Deloitte as their auditor. Enforcement Directorate is also investigating the startup for foreign exchange management act (FEMA) violations.
Investors, including General Atlantic, Peak XV Partners (formerly Sequoia Capital India), and Chan Zuckerberg Initiative did not comment anything.
Prosus, which has a 9.6% stake in Byju’s, said that shareholders unanimously passed resolutions at EGM, which includes reconstitution of board and change in leadership.
Byju’s in response to EGM said that any decisions made are invalid and ineffective, stating that they did not comply with the company’s internal laws, which require at least one founder-director to be present to establish a valid quorum.
Byju’s said, “As the founders did not participate in the meeting, the quorum was never legitimately established, rendering the resolutions null and void.”
Byju’s had requested intervention from Karnataka State High Court before shareholder meeting. The court ruled on Wednesday that any resolutions passed by shareholders would not apply until a further hearing on March 13.
However, Investors have decided to present the decisions from EGM to the Karnataka court.
“As shareholders and significant investors, we are confident in our position on the validity of the EGM meeting and its decisive outcome,” Prosus said.
The edtech startup lately suffered many setbacks, including decline in valuation and resignation of Deloitte as their auditor. Enforcement Directorate is also investigating the startup for foreign exchange management act (FEMA) violations.
Investors, including General Atlantic, Peak XV Partners (formerly Sequoia Capital India), and Chan Zuckerberg Initiative did not comment anything.