Byju's Major Investors Call For Byju Raveendran, Family's Ouster From Board
Byju's board comprises Byju Raveendran, his wife Divya Gokulnath and brother Riju Raveendran.
A number of major investors in Byju's have called for an extraordinary general meeting to seek changes and remove Byju Raveendran and his family from the edtech's board, as it walks a tightrope between winding up and surviving.
A number of investors, including Prosus, have issued an EGM notice today to Think & Learn Pvt. shareholders to meet and discuss the resolution of the company's outstanding governance, financial mismanagement and compliance issues, the reconstitution of its board of directors and a change in the company's leadership.
Byju's board comprises Byju Raveendran, his wife Divya Gokulnath and his brother Riju Raveendran.
"The issuance of this EGM notice follows many months of continued efforts by shareholders to engage with the company to address persistent issues relating to corporate governance, mismanagement and compliance. These efforts have been ongoing following the resignation from the board in June 2023 of directors nominated by Prosus and other shareholders," the investors said in a statement.
Though Byju's advisory council, comprising Mohandas Pai and Rajnish Kumar, is addressing some looming challenges, it continues to remain "deeply concerned" about the future stability under the current leadership, the investor group said.
"We also continue to believe in the role and contribution of Byju's. As shareholders, we will continue to assert our rights, in collaboration with other shareholders and government authorities to safeguard the long-term interests of the company and its stakeholders," it said.
The EGM notice comes days after Byju's announced a rights issue to raise $200 million at a pre-money valuation of anywhere between $25-$30 million. Its problems have peaked, with overseas lenders and a French outsourcing vendor moving for its insolvency in the past month.
