Many of Byju’s big investors, who are going through a very difficult period, now want change, so they have called an extraordinary general meeting (EGM) to remove Byju Raveendran and his family from the board of EdTech.
Byju investors issued notice
Many investors including Prosus issued notice for EGM to Think & Learn Pvt. on Thursday. Meeting the shareholders, discussions will be held on how to run the company going forward, resolution of many issues including its compliance, restructuring of its board of directors and leadership of the company.
Byju’s board includes Byju Raveendran, his wife Divya Gokulnath and his brother Riju Raveendran.
Investors have issued a statement saying – ‘This EGM notice has been issued after several months of continuous efforts by the shareholders to engage with the company to resolve the issues related to corporate governance, poor management and compliance. This effort is continuing after the resignation of the board of directors nominated by Prosus and the remaining shareholders in June 2023.
Concern among investors about leadership
‘While Byju’s Advisory Council, which includes Mohandas Pai and Rajneesh Kumar, is addressing some of the emerging challenges, there remain deep concerns about future stability under the current leadership,’ the investor group said.
The statement said that ‘We also believe in the role and contribution of Byju. As shareholders, we will continue to assert our rights together with other shareholders and government authorities to protect the long-term interests of the company and its stakeholders.
Byju in trouble
The EGM notice comes days after Byju’s announced a rights issue to raise $200 million at a pre-money valuation between $25-30 million. Its troubles are so severe, foreign lenders and a French outsourcing vendor took steps to bankrupt it last month.
