In a fresh twist to the Byju's saga, founder Byju Raveendran and the edtech's other board members, which includes his wife, Divya Gokulnath and brother Riju Raveendran, have reportedly decided to skip the extraordinary general meeting (EGM) called by the company's investors on February 23 to oust the top management.
"This EGM is procedurally invalid, contractually in contravention of our AOA and SHA, legally on the wrong side of the Companies Act, 2013. Byju Raveendran or any other Board member will not attend this invalid EGM. This means the EGM, if it is still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda. As custodians of BYJU'S, it is the responsibility of the Founders to respect the established procedures of law and protect the company's integrity," Byju's spokesperson said.
Investor sources are, however, sticking to the EGM. "EGM is valid and fully in accordance with applicable law and will continue as per plan. To say the EGM won't have quorum if founders don't attend would be incorrect," a statement from the investors side said.
Shareholders at Byju's are set to vote on Friday on a resolution brought by some investors to oust Raveendran and his family members over alleged "mismanagement and failures" at what was once India's hottest tech startup.
However, the outcome of the vote at the extraordinary general meeting (EGM) will not be applicable until March 13, when the Karnataka High Court will next hear Raveendran's plea challenging the move by certain investors.
The Karnataka High Court on Wednesday refused to stay the EGM, called by shareholders collectively holding more than 32 per cent stake in Byju's. Raveendran and family own 26.3 per cent in the company. The EGM notice calls for ouster of the current board of Think & Learn, the firm that operates Byju's, composed of Raveendran, his wife and co-founder Divya Gokulnath and his brother Riju Ravindran.