The Karnataka High Court on Wednesday (March 13) extended the interim protection granted to Byju's CEO Byju Raveendran till March 28 against any possible ouster decision called by foreign investors, Bar & Bench reported. Last month, an Extraordinary General Meeting (EGM) was called by majority shareholders seeking the removal of Raveendran. Investors Prosus, General Atlantic and Peak XV on February 23 voted to sack CEO Byju Raveendran and his family from Byju’s.
Around the same time, four investors of Byju's filed a mismanagement suit in the NCLT, seeking the removal of Raveendran from the board of directors. The shareholders in the edtech company filed a mismanagement and oppression suit against Raveendran in a bid to oust him from the firm.
Before the EGM, Think and Learn had filed a plea in the Karnataka High Court asking for relief. In an interim order, the HC stated that the decisions in the EGM will be subject to the next hearing of the petition, which has been scheduled for March 13.
The advocates for Think and Learn argued that the EGM of shareholders of the firm had not followed the procedure contemplated under Section 100(3) of Companies Act, 2013.
The Karnataka High Court in the interim order had said that any decision taken by the shareholders at the upcoming extraordinary general meeting (EGM) would not be given effect until the court passed final orders concerning BYJU’s petition challenging the shareholders meeting.
"The decision, if any taken by the shareholders of the petitioner company in the extraordinary general meeting scheduled on Friday, February 23, shall not be given effect until the next date of hearing," the High Court said.
Following the EGM, Raveendran wrote to his staff that for now he will continue to be the CEO. "I am writing this letter to you as the CEO of our Company. Contrary to what you may have read in the media, I continue to remain CEO, the management remains unchanged, and the board remains the same. Put differently, it is 'business as usual' at Byju’s," Raveendran said in an official communication.