Investors of Byju’s, during the extraordinary general meeting (EGM) on Friday, voted and passed resolutions including the removal of founder Byju Raveendran as chief executive officer (CEO).

They passed resolutions to change the board, which includes Byju Raveendran’s wife and cofounder, Divya Gokulnath, and his brother Riju Raveendran.


The Raveendran family didn’t join the meeting. Byju’s said the resolutions were invalid and ineffective. Their passing challenged the rule of law at worst, it added.


The company said at least one founder-director must attend the meeting to form a valid quorum, but it was not met since neither Byju Raveendran, his wife nor his brother were present. This renders the resolutions taken at the meeting as "null and void," said a statement.

Prosus NV and Peak XV Partners were among the shareholders who voted yesterday to dethrone Byju Raveendran, indicating displeasure with the entrepreneur as his company fights to remain in business.

The outcome, however, will not be applicable until March 13 when the Karnataka High Court hears Mr Raveendran's challenge to the validity of the meeting. The shareholders too are expected to present their decisions before the court to justify their position.





Meanwhile, a group of four investors have filed an oppression and mismanagement suit against the company’s management in the National Company Law Tribunal (NCLT), Bengaluru Bench, to declare the founders unfit to run the company. The group has also asked for the appointment of a new board, declaring the rights issue as void.



The petition has been signed by Prosus, General Atlantic, Sofina, and Peak XV (formerly Sequoia), along with support from other shareholders including Tiger Global and Owl Ventures, according to sources. There was high drama at the EGM. The day started with a phishing attack to attempt to disrupt the meeting, according to people familiar with the matter. Attendees received a random notification from an unidentified source, saying that the meeting was cancelled.




Taking Byju’s to NCLT

According to investor sources, the concern raised in the suit at the NCLT includes alleged financial mismanagement by the founders, which led to losing control of test-prep subsidiary Aakash and defaulting on a $1.2 billion term loan B (TLB). The suit also highlighted multiple insolvency petitions filed by the Board of Control for Cricket in India, TLB lenders and Surfer Technologies Pvt Ltd.

“The relief sought includes declaring the present management as unfit to run the company and appointment of a new CEO and board,” said a person familiar with the development.


The suit includes directing the management to share information with the investors and conducting a forensic audit of the company.

The company has raised $5.08 billion from investors. The cash-strapped firm is now looking to raise $200 million via the rights issue. If that goes through, its post-money valuation will be between $230 million and $250 million, a 99 per cent drop from the $22 billion valuation the firm had in 2022, according to sources.

A Byju’s spokesperson said the firm had not received any formal intimation of the petition.