BYJU’S holds EGM, proposes formation of board advisory committee to provide CEO strategic guidance

Edtech giant BYJU’S, currently grappling with a crisis sparked by the resignation of its statutory auditor Deloitte and the departure of key board members, convened an extraordinary general meeting (EGM) on July 4 to address some of the pressing concerns. Among the critical issues addressed were the ongoing negotiations with debt holders, updates on the audit completion timeline, and plans for forming a Board Advisory Committee (BAC), people aware of the development told Business Today.

The EGM, attended by key shareholders of the company, was addressed by founder and CEO Byju Raveendran, co-founder and director Divya Gokulnath, and CFO Ajay Goel.

Raveendran informed shareholders about the company’s plans to establish a BAC that will serve as a working group consisting of independent directors. BAC, with members from credible backgrounds and relevant experience from diverse corporate fields, will provide advice and guidance to the CEO on matters pertaining to the composition of the board and the governance structure suitable for a company of BYJU’S scale, size, and performance aspirations.

He also the company will soon create a “world-class board that aligns with the ambitious goals of BYJU’S.”

Raveendran also said that details of the members and composition of the BAC will be discussed at next EGM scheduled to take place in approximately three weeks.

Providing an update on the on-boarding of the new auditor, CFO Goel said newly appointed auditor BDO (MSKA & Associates) will cover the audit for Aakash Educational Services, WhiteHat Jr, Think & Learn Pvt. Ltd. (the parent firm of Byju’s) as well as the overall group. “Both the BDO and BYJU’S teams are actively engaged, and the audit process has already commenced. Audit for most of the subsidiaries for FY22 has been successfully completed. However, the audit for Aakash, WhiteHat Jr , Think & Learn Pvt. Ltd is currently underway in parallel, with the aim of optimizing the timelines,” he said.

Goel also said BDO has allocated sufficient resources for the timely completion of audits. The timeline for the completion of the FY22 audit is set for the end of September, while the FY23 audit is expected to be concluded by the end of December.