Byju's EGM results out! Over 60% of shareholders vote for removal of CEO Raveendran; company says 'It's invalid'

More than 60% of Byju's shareholders voted to remove Founder & CEO Byju Raveendran, his wife, and his brother from the company's board, citing concerns over "mismanagement and failures" within what was previously regarded as one of India's most promising tech startups.

As of now, Only Founder CEO Raveendran Byju, along with his wife Divya Gokulnath, and brother Riju Raveendran—aree the only three members in the company's board. They didn't attend the extraordinary general meeting (EGM) called it as 'illegal'.

The investors who called this meeting collectively hold more than 32% of Byju's parent Think & Learn (T&L).

Prosus stated that shareholders approved all proposals, including addressing governance issues, financial mismanagement and compliance issues at Byju's; the reconstitution of the board of directors so that it is no longer controlled by the founder of T&L; and a change of leadership of the company."

In response, Byju's issued a preemptive statement, declaring that the resolutions passed during the recently concluded EGM - attended by a small cohort of select shareholders - are invalid and ineffective. The passing of the unenforceable resolutions challenges the rule of law at worst."

However, the outcome of the extraordinary general meeting (EGM) will remain on hold until a court ruling on March 13, following Raveendran's petition against the EGM.

The court allowed the EGM to proceed but suspended any resolutions until the next hearing.

"As shareholders and significant investors, we are confident in our position on the validity of the EGM meeting and its decisive outcome, which we will now present to the Karnataka High Court in line with due process," Prosus said.

Byju's, in its statement, cited the Karnataka High Court order and said, "coupled with numerous procedural irregularities and deficiencies, invalidates the resolutions passed by a select, narrow group of shareholders." "These resolutions were voted upon without the valid constitution of a quorum, as stipulated in BYJU'S Articles of Association (AoA). According to Articles 38 and 39(a) of the AoA, at least one founder-director is required to form a valid quorum.

"As the founders did not participate in the meeting, the quorum was never legitimately established, rendering the resolutions null and void," it said, adding "only around 20 per cent of the number of shareholders attended this farcical EGM." Byju's referred to the number of shareholders and not the shareholding they hold in the company.