Shareholders controlling more than 60% of BYJU's cap table voted in favour of a series of resolutions aimed at resolving governance, financial mismanagement, and compliance issues plaguing the edtech giant. The Extraordinary General Meeting (EGM) concluded with unanimous approval for all proposed changes, including the reconstitution of the Board of Directors and a change in the company's leadership.
The EGM was called by Byju's shareholders to address the proposed ousting of founder and CEO Byju Raveendran has concluded. The shareholders who had called this EGM include Prosus, General Atlantic, Peak XV, Sofina, Chan Zuckerberg Initiative, Owl Ventures and Sand Capital Management, representing over 30% of the shareholding in the company, CNBC-TV18 had earlier reported.
The voting process, led by Prosus, concluded around 12.30 pm. Sources within Byju's disclosed to CNBC-TV18 that the meeting was “marred by a series of setbacks”.
“One of the most significant issues encountered during the EGM was the inability of the organisers to identify and allow authorised participants into the meeting,” Byju's sources said. According to the sources, it reportedly took two hours for the organisers to identify authorised participants and start the meeting.
Byju's sources also mentioned there were technical glitches in the EGM, which kicked off at 9 am and went on for about four hours on February 23.
Meanwhile, CNBC-TV18 learnt from other sources that there were attempts were made to "disrupt the meeting by persons impersonating investors." They also said that of a total of 170 joinees only 37 were allowed after verification of pre-authorised names.
However, investor sources reveal that there were no technical glitches and the meeting kicked off as scheduled. Speaking about the unauthorised participants joining the call, the sources said, "They used background whistles and sharp noises to sabotage. Unauthorised persons were duly removed. After an hour and once the verification process was complete, the meeting proceeded smoothly following due process."
The EGM notice has listed seven items on the agenda for shareholders to vote on. The key among them was the removal of Byju Raveendran as the managing director and CEO of the company and both Divya Gokulnath and Riju Raveendran from their respective management roles and as directors.
Auditors BDO/MSKA Associates were also present in the EGM throughout, which has an independent scrutineer as well.
Sources also confirmed that all shareholders had a chance to confirm and attend. "All verified individuals who confirmed attendance and joined were allowed in and present," they added.
On Thursday, Byju's termed the meeting "procedurally invalid" and said that Raveendran and other board members would not be attending.
"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," a Byju's spokesperson said in a statement.
First Published: Feb 23, 2024 12:59 PM IST
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