BENGALURU: In a setback for embattled edtech firm Byju’s, its shareholders who control nearly 60% of its parent firm Think & Learn on Friday voted to remove founder CEO Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran from the board.
The extraordinary general meeting (EGM) passed resolutions seeking removal of the current management and reconfiguration of the board, among others.
According to sources, those who attended the virtual EGM include Prosus, Owl Ventures, Peak XV and Chan Zuckerberg Initiative, among others. However, Byju’s said only 20% of the shareholders attended the virtual meet, which it termed “invalid and ineffective”.
The edtech firm said the Karnataka High Court had granted it interim relief that any decisions made during the meeting would not be given effect until the next hearing.
Sources said many shareholders could not join the online meeting, which was marred by tech glitches.
Prosus, one of the shareholders, said: “At the EGM, shareholders unanimously passed all resolutions. These include 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.”
However, Byju’s said: “These resolutions merely request the board to “consider” the recommendations passed at the EGM. They do not have any binding effect whatsoever on the company or its decision-making processes.”
Meanwhile, some investors have moved the National Company Law Tribunal against suppression of investor rights and mismanagement of the firm.