New Delhi: byju’s Shareholders including Prosus and Peak XV Partners voted To drag out Its founded by And CEO Byju Raveendran said in a statement on Friday. However, CEO Raveendran, his wife and brother did not attend the meeting.
Prosus, which holds 9.6% stake in Byju’s, said shareholders unanimously passed the resolution at the EGM, which includes restructuring of the board and change in leadership.
In response to the EGM, Byju’s said any decisions taken are invalid and ineffective, adding that they did not follow the company’s internal laws, which require the presence of at least one founder-director to establish a valid quorum. Is required.
Byju said, “Since the founders did not attend the meeting, the quorum was never validly established, rendering the resolutions invalid.”
Byju’s had sought intervention from the Karnataka State High Court ahead of the shareholder meeting. The court ruled on Wednesday that any resolution passed by shareholders would not come into force until the next hearing on March 13.
However, investors Has decided to present the decisions from the EGM in the Karnataka Court.
“As shareholders and significant investors, we are confident in the legitimacy of the EGM meeting and our position on its decisive outcome,” Prosus said.
The edtech startup faced several setbacks recently, including a decline in valuation and the resignation of Deloitte as their auditor. The Enforcement Directorate is also investigating the startup for Foreign Exchange Management Act (FEMA) violations.
Investors including General Atlantic, Peak XV Partners (formerly Sequoia Capital India) and Chan Zuckerberg Initiative did not comment.