Before the shareholders’ meeting of BJU this week, a direction from the court

Bengaluru:

Indian education firm Byju’s on Wednesday said any resolutions passed at its shareholders’ meeting later this week have been declared invalid by the court pending the final hearing of its plea.

The company has faced a number of setbacks since the beginning of 2023, including the resignation of its auditor, lenders initiating bankruptcy proceedings against Byju’s holding company and a US lawsuit disputing the loan terms and repayments.

Byju said some investors, including General Atlantic, Peak

It said its case before the Karnataka High Court sought to “prevent these investors from disrupting the operations of the company by depriving them of urgently needed capital”.

A group of shareholders including tech investor Prosus requested a meeting earlier this month to resolve “financial mismanagement and compliance issues.”

They also demanded the removal of company founder and CEO Byju Raveendran and reconstitution of the board.

Byju’s, controlled by billionaire Raveendran, was valued at $22 billion in 2022. It is now eyeing a $200 million rights issue, which is a 99% discount to that valuation.

Members representing Peak XV, Prosus and Chan Zuckerberg Initiative had resigned from the Byju’s board last year.

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