Byju’s EGM: Investors to Meet Today to Oust the Founder

Despite the court order, Byju’s EGM will proceed without the participation of the founder, Byju Raveendran, his wife and co-founder, Divya Gokulnath, and his brother, Riju Raveendran.

Byju's EGM

Some investors in Byju’s have called for an extraordinary general meeting (EGM) today to discuss the removal of founder and CEO Byju Raveendran. Sanjay Shekhawat, an experienced business analyst, is invited on business TV24 to explain what is happening at Byju’s.

Anchor: Welcome to our newsroom. The ed-tech gaint from Byju’s is in trouble. Sanjay Shekhawat is here to explain what is going on in the company. sanjay, explain to our viewers what this extraordinary general meeting is.

Sanjay: first of all, Thank you for having me here. BYJU’s EGM investors called for an extraordinary general meeting(EGM), which is scheduled for today. EGM is called when the company dealing with an urgent issue, like a legal dispute, a government notice or a financial crisis. People often confuse it with AGM which is the Annual general meeting. When there is an issue that investors can’t wait until the next shareholder’s meeting they call for EGM.

 Anchor: Now, explain to us why the investors called for Byju’s EGM

Sanjay: There was a series of crises in the company. For example, there was a legal dispute with US lenders over a $1.2 billion loan and Deloitte stepped down as auditor. Also, Some investors have accused the company’s management of withholding critical information which caused a split between the company and some of its key supporters. The allegations include failure to disclose financial information and significant differences between what was expected and what occurred. all these things fueled the crisis. So, a group of shareholders has called this meeting. Byju’s EGM aims to oust the founder  Byju Raveendran and appoint a new board. 

Anchor: Karnataka High Court order on Byju’s EGM. What is that?

Sanjay: Yes. So, the thing is Karnataka High Court order said any decisions or resolutions passed during Byju’s EGM would not be valid until the next hearing. It’s a relief for the founder. Initially, the founder went to the court to stop the EGM but the court refused it. In response to Byju’s EGM, the founder Byju said the meeting is “merely a smokescreen designed to disrupt the management, control, and functioning of the company”.

Anchor: it means even if the decision of the EGM meeting will not be applicable until the next court hiring, still it’s very crucial for the company.

Sanjay: yes 

Anchor: Let’s see how today’s Byju’s EGM shapes the company’s future. Thank you for joining us, Sanjay.

Sanjay: my pleasure.

Anchor: In 2006, Byju Raveendran began teaching MBA candidates for the CAT exam. Later on, the company expanded to include undergraduate and secondary school students. the company launched its learning app in 2015. Byju’s became the country’s first ed-tech unicorn within a few years. Currently, the company has been facing a series of crises. Last year, Prosus, a big tech investor, and the Chan Zuckerberg Initiative, a philanthropic venture founded by Facebook CEO Mark Zuckerberg and his wife, stepped down from the board.

Stay tuned for more updates.

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1. What is an EGM?

A. An Extraordinary General Meeting (EGM) is a shareholders’ meeting called to address urgent issues that cannot wait until the next Annual General Meeting (AGM). It’s typically convened for legal disputes, financial crises, or significant management changes.

2. Why did Byju’s investors call for an EGM?

A. Byju’s investors called for an EGM due to a series of crises, including a legal dispute with US lenders, Deloitte stepping down as auditor, and allegations of management withholding critical information. The purpose is to remove founder and CEO Byju Raveendran and appoint a new board.

3. What was the Karnataka High Court’s order regarding the EGM?

A. The Karnataka High Court ordered that any decisions or resolutions passed during Byju’s EGM would not be valid until the next court hearing.

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