Founder Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran have reportedly opted to skip the Friday Extraordinary General Meeting (EGM), which was convened to vote on the removal of the top management.
The Extraordinary General Meeting (EGM) convened by investors of Byju’s parent company, Think & Learn Pvt. Ltd, encountered several disruptions on Friday. Allegedly, a few individuals sabotaged the meeting using various means, according to sources from the investors’ side. Prior to this, investors had expressed concerns over a range of issues, including mismanagement within the edtech sector and the company’s failure to enforce its rights regarding the acquisition of Aakash Educational Services Ltd (AESL).
Sources reported that on Friday, the meeting was delayed for over an hour due to the time-consuming process of verifying attendees, as hundreds of individuals attempted to join the Zoom video-conferencing link of the EGM. Despite 170 people initially attempting to attend, the number of total participants was ultimately reduced to 37 after the verification of pre-authorized names.
One of the investors informed the Economic Times that the meeting commenced amidst a phishing attack aimed at disrupting the proceedings. Attendees received a notification from an unidentified source falsely claiming that the meeting had been cancelled.
According to another attendee, several representatives from Byju’s attempted to join the meeting without following the proper process, effectively ambushing the proceedings. Despite being asked to introduce themselves, they remained unresponsive. This appeared to be a deliberate attempt to disrupt and delay the proceedings, but the meeting proceeded as scheduled.
It was previously reported that Byju Raveendran, along with his wife Divya Gokulnath and brother Riju Raveendran, opted to abstain from attending the Friday Extraordinary General Meeting (EGM) called for the removal of the top management. The Raveendran family collectively holds a significant ownership stake of 26.3% in the company.
The investors’ side reiterated their commitment to proceeding with the Extraordinary General Meeting (EGM), asserting its validity and compliance with relevant laws. They emphasized that the EGM would proceed as scheduled regardless of whether the founders attend, countering any suggestions that the meeting’s quorum would be compromised by their absence.
The Karnataka High Court declined to grant a stay on the Extraordinary General Meeting (EGM) called by shareholders holding over 32% stake in Byju’s.
The shareholders clarified that while the HC permitted the EGM to proceed as scheduled, the final outcome of the meeting would be subject to the court’s decision after the petition’s final hearing.
Byju’s has taken legal action by filing a petition under Section 9 of the Arbitration and Conciliation Act, seeking to prevent certain select shareholders from convening the Extraordinary General Meeting (EGM) on February 23.
In a statement, the edtech company asserted that this move followed its petition arguing that these investors had violated the Articles of Association (AoA), the Shareholders’ Agreement (SHA), and the Companies Act, 2013, by calling for the EGM.
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