Edtech major Think and Learn Pvt Ltd, which operates under the brand name Byju’s, on Friday, February 2, said investors have no voting rights on the CEO or management change as per the shareholder’s agreement. This comes after Byju’s investors such as Prosus called for an Extraordinary General Meeting (EGM) to address issues at the edtech major and oust the founders from having control over the company. Some six investors led by Dutch investment firm Prosus in the EGM notice requested the resolution of the outstanding governance, financial mismanagement and compliance issues and the reconstitution of the Board of Directors.
“The resolutions being put forward for the EGM to consider include a request for the resolution of outstanding governance, financial mismanagement and compliance issues, the reconstitution of the Board of Directors so that it is no longer controlled by the founders of T&L and a change in leadership of the Company,” a recent notice to shareholders by the group of investors said.
Byju’s rejects ouster call
Responding to the call for leadership changes, edtech major Think and Learn Pvt Ltd, which operates under the brand name BYJU’S, said that investors have no voting rights on the CEO or management change as per the shareholder’s agreement. Investors lack the “voting rights to change (the) chief executive,” it said in a statement, effectively rejecting the demand for Byju Raveendran’s resignation.
Byju’s said that it will continue with the proposed USD 200 million rights issue after receiving encouraging responses from multiple investors.
“The company is gladdened by the support received by a wide section of its shareholders. The criticality of the rights issue has been shared with all shareholders, with capital being pivotal for a successful turnaround. Unfortunately, the company and our employees are paying the price for a stand-off triggered by some investors,” the company said in a statement.
In a note to employees, the company said that certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of Byju’s,” the note said. The management said it was “pained” by investor demands for Raveendran’s ouster.
“The resolutions being put forward for the EGM to consider include a request for the resolution of outstanding governance, financial mismanagement and compliance issues, the reconstitution of the Board of Directors so that it is no longer controlled by the founders of T&L and a change in leadership of the Company,” a recent notice to shareholders by the group of investors said.
Byju’s rejects ouster call
Responding to the call for leadership changes, edtech major Think and Learn Pvt Ltd, which operates under the brand name BYJU’S, said that investors have no voting rights on the CEO or management change as per the shareholder’s agreement. Investors lack the “voting rights to change (the) chief executive,” it said in a statement, effectively rejecting the demand for Byju Raveendran’s resignation.
Byju’s said that it will continue with the proposed USD 200 million rights issue after receiving encouraging responses from multiple investors.
“The company is gladdened by the support received by a wide section of its shareholders. The criticality of the rights issue has been shared with all shareholders, with capital being pivotal for a successful turnaround. Unfortunately, the company and our employees are paying the price for a stand-off triggered by some investors,” the company said in a statement.
In a note to employees, the company said that certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of Byju’s,” the note said. The management said it was “pained” by investor demands for Raveendran’s ouster.
