Byju’s says Karnataka HC has stayed upcoming EGM outcome; investors to go ahead
MUMBAI : Think & Learn Pvt. Ltd, the parent of edtech firm Byju’s, said it has secured an order from the Karnataka High Court stating that any resolutions proposed in an emergency meeting called by some of its key investors would be invalid until a final hearing by the court.
A spokesperson for the investors said the EGM would continue on Friday, and that they would to go ahead for a vote to remove Raveendran as CEO. The high court has not declared the meeting as illegal, not has it invalidated the resolutions of the EGM, the spokesperson said.
Key investors of the company, including General Atlantic, Prosus Ventures, Peak XV and Chan Zuckerberg Initiative, have called for an extraordinary general meeting on 23 February seeking to change the company’s leadership, including the ouster of co-founder and CEO Byju Raveendran, reconstitute the company’s board, and address financial management and governance issues. “This development marks a significant victory for Byju’s, with the court recognizing the urgent need to protect the company’s interests and uphold the principles established by law," the company said in a statement on Wednesday.
The investors are likely to weigh all options before responding, a person with knowledge of the development said. The investors were not immediately available for a comment.
Byju’s filed its petition before the Karnataka High Court under Section 9 of The Arbitration and Conciliation Act, 1996, arguing that certain investors had violated the Articles of Association (AoA), the Shareholders’ Agreement (SHA), and the Companies Act, 2013 by calling for an EGM. “In its petition, Byju’S highlighted that the purported reasons for the EGM, including the removal of Byju Raveendran as CEO and
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