The CEO of the ed-tech company Byju's, Byju Raveendran, is in a court battle with shareholders over the removal of the company's millionaire founder. The company used to be worth more than $20 billion, but its value has dropped sharply. It has also lost the support of key investors and is dealing with a number of problems, such as legal issues and the loss of its auditor, Deloitte.
Granted Legal Protection In the midst of turmoil
The Karnataka High Court has granted Byju's temporary protection, meaning that decisions made at the impending extraordinary general meeting (EGM) requested by shareholders—including Prosus—won't be put into effect until after another hearing. At the EGM on February 23, Byju's accused the shareholders of trying to interfere with the company's management.
Despite a court order, shareholder meetings are proceeding
Sources claim that the EGM is still scheduled to happen despite the court injunction, and investors intend to move forward with their intention to remove Raveendran from his position as CEO. Byju's has claimed that by demanding the EGM, some investors—including General Atlantic and the Chan Zuckerberg Initiative—violated the terms of their shareholder agreements. Earlier in the year, members of Byju's board from Prosus and the Chan Zuckerberg Initiative resigned.
Future Uncertainty in Byju's
Byju is facing both internal and external pressures, and the current shareholder conflict makes everything more unpredictable.
For more : https://vygrnews.com/business/byju’sraveendranisaskedtoresignbytheshareholders
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(Inputs from agencies)
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