Byju's call shareholders move to oust CEO Raveendran 'invalid'

livemint.com:

Byju's investors unanimously vote to oust founders, revamp board "As the founders did not participate in the meeting, the quorum was never legitimately established, rendering the resolutions null and void," Byju's said. The edtech company further added, “These resolutions were voted upon without the valid constitution of a quorum, as stipulated in Byju’s Articles of Association.

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. During the Extraordinary General Meeting (EGM) held on Friday, numerous employees from Byju's participated by accessing the meeting link, resulting in disruptions at the outset.

According to a source familiar with the EGM proceedings, some employees appealed to the investor consortium not to take action against Raveendran. Also read: Byju’s investor consortium moves NCLT against rights issue On the other hand, at least two dozen investors, including Prosus, General Atlantic, Sofina, and Peak XV Partners attended the meeting on Friday.

“At today’s extraordinary general meeting shareholders unanimously passed all resolutions put forward for vote," Netherlands-based Prosus, the second-largest stakeholder in Byju’s with more than a 9% share, Prosus said in a statement, who holds 9.6% stake in the edtech company. It further added, “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." Prior to the shareholder meeting, Byju's had