“Null and void”: Byju’s shareholders move to remove CEO

Byju said the resolutions taken at the meeting were “null and void” (File)

New Delhi:

Troubled edtech star Byju’s has protested against shareholders’ decision on Friday to remove its founder as chief executive officer. The company said the resolutions taken at the shareholders’ meeting were “invalid” because its founder was not present.

“The resolutions passed during the recently concluded extraordinary general meeting – which was attended by a small group of select shareholders – are invalid and ineffective,” Byju said.

The company said that at least one founder-director should attend the meeting to form a valid quorum, but this was not met as none of Byju Raveendran, his wife or his brother were present. This makes the resolutions taken at the meeting “invalid and void”, a statement said.

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However, the result will not come into force until March 13 when the Karnataka High Court will hear Mr Raveendran’s challenge to the legality of the meeting. Shareholders are also expected to present their decisions to the court to justify their position.

Bloomberg, citing people with knowledge of the matter, reported that several employees tried to cancel the meeting on a Zoom call involving investors and management. It said that during the meeting, unidentified participants made loud noises and whistled.

Byju’s was once a high-flying online tuition startup that was valued at $22 billion in 2022. Its valuation has since dropped 90% and the company has cut thousands of jobs to survive.

In a series of setbacks, the company recently saw its auditor Deloitte resign and be sued in the US disputing loan repayment terms. It is also facing an Enforcement Directorate probe into alleged Foreign Exchange Management Act (FEMA) violations.