“These included a request for the resolution of the outstanding governance, financial mismanagement and compliance issues at Byju’s; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the company,” Prosus said in a statement.
After weeks of public spat, the EGM was held on Friday even as Byju’s secured an interim stay from the Karnataka high court which said that any resolutions passed at the meeting would be contingent upon the final decision on a petition filed by the company.
The EGM was initially marred by glitches with many unregistered users–including Byju’s employees–barging into the meeting and disrupting the proceedings.
A group of four investors led by Prosus on Friday moved the Bengaluru bench of the National Company Law Tribunal (NCLT), filing a petition for oppression and mismanagement of the company.
According to people aware of the petition, the investors called for the present management to be declared ‘unfit’ to run the company and that the CEO and board should be replaced.
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“They have asked for management to share information and also conduct a forensic audit as well as declare the rights issue as invalid,” said one of the persons cited above.Investors moved the NCLT even as the EGM was underway. The meeting was allegedly disrupted by Bjyu’s employees when the virtual call commenced around 9 am.
Raveendran and family members refused to attend the EGM, terming it as ‘invalid.’
A spokesperson for Byju’s said Friday evening the resolutions passed in the EGM are ‘invalid and ineffective’.
“The passing of the unenforceable resolutions challenges the rule of law at worst,” the company said.