Byju’s shareholders vote to remove founder Raveendran and restructure the board; the business declares the EGM void.

Raveendran refrained from attending the EGM with his family. According to Byju’s, just 20% of the investors showed up for the meeting.

Due to “mismanagement,” the shareholders of Byju’s Friday decided to remove founder and CEO Byju Raveendran and reorganise the board of directors, setting the groundwork for a legal dispute. The motions were deemed “invalid” by the firm, which maintained its position during Friday’s extraordinary general meeting (EGM), which was held without the presence of the founders.

One of the shareholders who convened the EGM, the IT investment firm Prosus, claimed in a statement that the shareholders “unanimously passed all resolutions.”

“These included a request for the company’s leadership to be changed, the reorganisation of the board of directors to remove T&L’s founder from control, and the resolution of the outstanding governance, financial mismanagement, and compliance issues at Byju’s,” the statement read. Byju’s parent firm is called Think & Learn Pvt Ltd, or T&L for short.

Among the resolutions were those that removed founder Byju Raveendran from his position as CEO and his brother Riju Raveendran and wife Divya Gokulnath from their directorships and management positions, respectively.

Raveendran refrained from attending the EGM with his family. According to Byju’s, just 20% of the investors showed up for the meeting. It stated that the resolutions, which were approved by a “limited” number of shareholders, are “invalid and ineffective” and only “ask” that the board “consider” them.

It stated: “As shareholders and major investors, we are confident in our position regarding the legitimacy of the EGM meeting and its definitive result, which we will now submit to the Karnataka High Court in accordance with due process.”

Neither the corporation nor its decision-making processes will be bound by these resolutions, according to the startup.