New Delhi: Four Byju’s investors has filed trial against Management of the company before the Bengaluru bench of NCLT. They are seeking to declare including the founders ceo Byju Raveendran was declared unfit to run the company and appoint a new board. Investors have also requested a forensic audit of the company. This petition has been filed to prevent value erosion for all shareholders and preserve value for other stakeholders like employees and customers.
Investors including Prosus, GA, Sofina and Peak XV have raised concerns about financial mismanagement by the founders, including Sky’s loss of control and default. byju’s Alpha (TLB Loan). He has also highlighted long-standing corporate governance issues, such as the absence of a CFO and independent director.
The lawsuit also addresses alleged regulatory non-compliance, the oppressive nature of the rights offering and unauthorized corporate actions in connection with the acquisition of Singapore edtech company Northwest Education Pte. It also mentions inter-corporate loans on undisclosed terms and multiple insolvency petitions filed by BCCI, TLB lenders and Surfer Technologies Pvt Ltd.
Investors are demanding the ouster of Raveendran and his family from the Byju board through an extraordinary general meeting of shareholders. They want to protect the rights of all shareholders and ensure the continued growth of the company.
Apart from disqualifying the current management, investors are demanding the appointment of a new CEO and a new board. They also want management to share information with investors and refrain from taking any corporate actions that could harm shareholders’ interests.
The petition filed before the NCLT aims to hold the management accountable for their actions and bring about the necessary changes to safeguard the future of Byju’s. Investors are committed to transparency, good governance and the overall well-being of the company.