The CEO of Byju’s, formerly the most valuable startup in India, Byju Raveendran, gave his staff assurances that he still has authority over the business he started and that he intends to fight against the shareholders who voted to remove him.
“Contrary to what you may have read in the media, I continue to remain CEO, the management remains unchanged, and the board remains the same,” Raveendran wrote in a letter. “I am not taking any of these allegations lying down and will challenge these illegal and prejudicial actions.”
At least twenty investors, including those from Chan Zuckerberg Initiative, Prosus Ventures, General Atlantic, and Peak XV Partners, attended the conference.
These events highlight the tumultuous relationship that exists between Byju’s and its investors, following the announcement by the ailing edtech company of a $200 million rights issue that would dilute the shares of investors who choose not to participate by 99%.
“To reemphasize, the rumours of my firing have been greatly exaggerated and highly inaccurate,” Raveendran further stated “claims made by a small group of select minority shareholders that they have unanimously passed the resolution in the EGM is completely wrong.”
He went on to say that the EGM was a “farce” because just 35 out of 170 shareholders, or around 45% of shareholders, had voted in favor of the proposals during the meeting.
According to the company’s articles of association, the EGM needs a “proper quorum,” which is comprised of at least one founder-director. Raveendran said that this was not the case. In addition, he stated that the resolutions approved by “a select, narrow group of shareholders” were unlawful due to “numerous procedural irregularities and deficiencies.”
