Byju Raveendran Faces Investor Backlash: EGM Showdown Looms

An extraordinary general meeting (EGM) to decide the fate of Byju Raveendran, the founder and CEO of Byju’s, is imminent as a group of investors push for his removal over alleged mismanagement and failures. The meeting, called by select investors, aims to address concerns related to the company’s management and financial disclosures.

Byju Raveendran and other board members, including Divya Gokulnath and Riju Ravindran, are notably absent from the scheduled EGM. Byju’s management has deemed the meeting ‘invalid’ citing procedural and contractual discrepancies, setting the stage for a contentious showdown.

Despite the absence of the founders, the investors are determined to proceed with the EGM, stating that it is legally valid and compliant. This conflict highlights the widening gap between the company’s leadership and its key stakeholders, with legal battles further complicating the situation.

The Karnataka High Court recently intervened, issuing an order to prevent any resolutions passed during the EGM from being implemented until a final hearing takes place. The court’s involvement underscores the gravity of the situation surrounding Byju’s and the corporate governance issues at play.

Key investors, including Prosus, General Atlantic, Chan Zuckerberg Initiative, and others, have raised concerns about the company’s financial transparency and management practices. Allegations of withheld information, inaccurate financial disclosures, and breaches of obligations have fueled the investor backlash.

As the dispute unfolds, regulatory bodies such as the Enforcement Directorate (ED), the Ministry of Corporate Affairs (MCA), and the Serious Fraud Investigation Office (SFIO) have been called upon to investigate the allegations against Byju’s management. The outcome of these investigations could have far-reaching implications for the future of the edtech giant.