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Byju's founder Byju Raveendran, wife Divya Gokulnath, brother Riju Raveendran, won't attend EGM: Report
Troubled edtech firm Byju's founder Byju Raveendran and the company's other board members Divya Gokulnath and Riju Raveendran, won't attend EGM called by the company's investors to oust them.
Glas Trust has also filed a lawsuit in a U.S. bankruptcy court against Byju’s founders and the company’s former Chief Strategy Officer, Anita Kishore. The trust alleges that they orchestrated a scheme to conceal and misappropriate $533 million from the $1.2 billion loan taken by Byju’s U.S. subsidiary, Alpha.
Moneycontrol reports that Byju's founder Byju Raveendran and the company's other board members, which include his wife, Divya Gokulnath, and brother, Riju Raveendran, won't attend the extraordinary general meeting (EGM) called by the company's investors on February 23 to oust the top management.
"This EGM is procedurally invalid, contractually in contravention of our AOA and SHA, legally on the wrong side of the Companies Act, 2013. Byju Raveendran or any other Board member will not attend this invalid EGM. This means the EGM, if it is still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda. As custodians of Byju's, it is the responsibility of the Founders to respect the established procedures of law and protect the company's integrity," said a Byju's spokesperson to Moneycontrol.
Quoting investor sources, Moneycontrol reports that investors claim the EGM is valid and fully in accordance with applicable law and said that it will continue as per plan. They also said that it would be 'incorrect to say that EGM won’t have a quorum if founders don’t attend'.
This comes after the company's investors, such as Prosus, General Atlantic, Peak XV, Sofina and others, called for an extraordinary general meeting, in a bid to oust the company's leadership and reconstitute its Board.
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