byjus crisis: Byju Raveendran, Divya Gokulnath and Riju Ravindran to skip company’s EGM

israel: Israel's judicial proposals prompt startups to relocate: government agency

Byju’s on Thursday said its founder Byju Raveendran, his wife and cofounder Divya Gokulnath, and his brother Riju Ravindran will not attend the extraordinary general meeting (EGM) called by a group of investors seeking removal of Raveendran as CEO and change of board.

The three are the only board members at Think & Learn – parent of Byju’s.

Elevate Your Tech Prowess with High-Value Skill Courses

Offering College Course Website
IIT Delhi IITD Certificate Programme in Data Science & Machine Learning Visit
Indian School of Business ISB Professional Certificate in Product Management Visit
IIM Lucknow IIML Executive Programme in FinTech, Banking & Applied Risk Management Visit

The troubled edtech firm claimed the EGM scheduled for Friday morning is “invalid”.

People close to the investor group seeking the change, however, said they are going ahead with the EGM.

Byju’s in a statement said, “This EGM is procedurally invalid, contractually in contravention of our AOA (article of association) and SHA (shareholding agreement), legally on the wrong side of the Companies Act, 2013.”

The EGM, if still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda, it added.

Discover the stories of your interest

On Wednesday, the Karnataka High Court had passed an interim order directing that any resolutions passed at Friday’s proposed extraordinary general meeting would be contingent upon its final decision on a petition filed by the edtech firm against the investors. The matter has been listed for next hearing on March 13.Byju’s filed a petition in the court challenging the EGM called by a group of investors, claiming that by calling for an EGM, the investors violated the shareholders’ agreement.

The cash-strapped edtech firm’s petition is against investors including Prosus, General Atlantic, Chan Zuckerberg Initiative, Owl Ventures, Peak XV Partners (formerly Sequoia Capital), SCI Investments, SCHF PV Mauritius, Sands Capital, Sofina, and T Rowe Price Associates.

Byju’s, once India’s most valued privately held startup at $22 billion, continues to face a severe cash crunch. Its founder Raveendran told shareholders on Wednesday that the proposed rights issue for $200 million has been fully subscribed, which pegs the value of the company at $220 million after the investment.

Source link

Online Company Registration in India

Leave a Reply

Your email address will not be published. Required fields are marked *