BENGALURU: In a big relief for embattled edtech firm Byju’s, the National Company Law Tribunal (NCLT), Bengaluru, on Thursday refused to halt the firm’s extraordinary general meeting (EGM) scheduled to take place on March 29 (today). The EGM is called for approval to increase the company’s authorised share capital following its $200 million rights issue.
Its investors including Prosus and Peak XV Partners had approached the NCLT seeking a stay on the EGM. They had filed an oppression and mismanagement suit against Byju Raveendran and the management. These investors sought to declare present management as unfit to run the company.
The NCLT has said that investors can challenge any decision or resolution taken at the meeting on Friday. It has listed the case for hearing on April 4. Separately, the Karnataka High Court on Thursday said that it will hear the case after two months. According to the investor sources, “This is the Byju team’s second request for a delay. The hearing took place today at their request for a delay, and now they have asked for another.”
It is also said the lawyers of the prominent investors agreed with Think & Learn counsel to postpone Thursday’s hearing on the Karnataka HC stay.
Sources from the edtech firm said its counsel said the litigating investors were two months ago provided access to the electronic data room which had all the required information. The edtech company’s counsels also said the required information and the EGM notice has been duly sent to every shareholder, including even those who have been against the rights issue from the outset.
Sources also said all investors will be participating in the EGM, and this will be a crucial meeting as the edtech firm needs at least 50% vote to increase the share capital.
Byju’s shareholders, who control nearly 60% of the firm’s parent Think & Learn(T&L), last month voted to remove founder Byju Raveendran and reconstitute the board that consists of Raveendran, his wife Divya Gokulnath and brother Riju Raveendran at the EGM.
Immediately after this, Raveendran had written a letter to employees saying he continues to be the CEO and that the EGM was invalid.