Byju’s investors recently initiated a rights issue to raise $200 million from existing investors at $225 million valuation from 29 January.
However, as the challenges persist for the Edtech platform, a consortium of key shareholders, holding over 30 per cent stake in it, has called for an extraordinary general meeting (EGM) to address persistent and ongoing issues, including a proposed change of management at the firm and removal of the top leadership led by Byju Raveendran, citing deep concerns about future stability under the current leadership.
What is EGM?
The EGM is issued to adopt resolutions on outstanding governance, financial mismanagement and compliance issues, advocating the reconstitution of the Board of Directors, ensuring independence from the founders of Byju’s parent company, Think & Learn, as per shareholder rights under the Companies Act, 2013.
Current Board of Company
Currently, the company’s board consists of founder and CEO Byju Raveendran, his co-founder and wife Divya Gokulnath, and his brother Riju Ravindran, following the departure of other members last year.
Investors persistently urge Raveendran to step aside from operational roles, expressing concerns since the departure of directors nominated by Prosus and others in June 2023.
Despite acknowledgment of the independent advisory council’s efforts in addressing challenges, shareholders express deep worry about the company’s future stability under the current leadership and board composition.
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