karnataka hc byju’s egm: Karnataka HC extends interim stay on Byju’s EGM till March 28

The Karnataka High Court on Wednesday extended its interim stay on educational tech company Byju’s plea challenging the validity of the extraordinary general meeting held last month that sought to remove founder Byju Raveendran as the chief executive officer.

The interim stay order, which turned the decisions of the EGM dated February 23 as non-enforceable, has been extended till March 28–the next date of hearing.

On February 21, Think and Learn, the Bengaluru-based edtech firm’s parent entity, had approached the Karnataka High Court for a stay on the decision of the EGM, which was spearheaded by a group of investors.

Byju’s claimed that the EGM was invalid as none of the founders attended the meeting, and as per the shareholder agreement, at least one founder needs to attend such a meeting for it to be valid.

Think and Learn has moved court against investors Chan Zuckerberg Mauritius, General Atlantic, Prosus, Owl Ventures, Peak XV, Sands Capital, and T Rowe Price, who have been made respondents in this case.

A day after the EGM, in which a group of investors voted to oust Raveendran as CEO and change the board, the founder wrote an email to employees saying he continues to be the chief executive at the company and there are no changes.

Separately, four investors led by Prosus also moved the National Company Law Tribunal (NCLT) Bengaluru challenging the $200-million rights issue. The company has been directed to keep this capital in an escrow account while the matter is being heard.