MUMBAI: A day ahead of the extraordinary general meeting (EGM) which a group of Byju’s major investors have called to seek removal of Byju Raveendran from position of CEO as well as a reconstitution of the firm’s board, Byju’s said that Raveendran and the board members will not attend the EGM which it said is “procedurally invalid.”
Following the resignation of representatives of Prosus, Peak XV Partners and Chan Zuckerberg Initiative from the board of Byju’s in June last year, it has been reduced to a family-run entity, comprising Raveendran, his wife and co-founder Divya Gokulnath and his brother Riju Raveendran.
“This EGM is procedurally invalid, contractually in contravention of our AOA (Articles of Association) and SHA (Shareholders Agreement), legally on the wrong side of the Companies Act, 2013,” a company spokesperson said in a statement on Thursday. Byju’s said that with Raveendran and board members deciding to skip the EGM, it will not have the required quorum and cannot proceed to discuss or vote on the agenda.
“As custodians of Byju’s, it is the responsibility of the founders to respect the established procedures of law and protect the company’s integrity,” the company added. The EGM is supposed to take place on Friday morning, according to the EGM notice reviewed by TOI.
Investors claim that they will hold the EGM as per plan but if the resolutions are put to vote, then they will test the law in court, lawyers said.
Following the resignation of representatives of Prosus, Peak XV Partners and Chan Zuckerberg Initiative from the board of Byju’s in June last year, it has been reduced to a family-run entity, comprising Raveendran, his wife and co-founder Divya Gokulnath and his brother Riju Raveendran.
“This EGM is procedurally invalid, contractually in contravention of our AOA (Articles of Association) and SHA (Shareholders Agreement), legally on the wrong side of the Companies Act, 2013,” a company spokesperson said in a statement on Thursday. Byju’s said that with Raveendran and board members deciding to skip the EGM, it will not have the required quorum and cannot proceed to discuss or vote on the agenda.
“As custodians of Byju’s, it is the responsibility of the founders to respect the established procedures of law and protect the company’s integrity,” the company added. The EGM is supposed to take place on Friday morning, according to the EGM notice reviewed by TOI.
Investors claim that they will hold the EGM as per plan but if the resolutions are put to vote, then they will test the law in court, lawyers said.