Major investors in beleaguered edtech Byju's have voted to oust Chief Executive Officer and eponymous founder Byju Raveendran, even as the company maintains that the resolutions won't amount to implementation.
Shareholders that own about 60% of the once-high-flying unicorn "unanimously passed all resolutions put forward for vote," according to a statement by Prosus.
"These included a request for the resolution of the outstanding governance, financial mismanagement and compliance issues at Byju's; the reconstitution of the board of directors so that it is no longer controlled by the founders of T&L; and a change in the leadership of the company," the statement said.
The investors maintained that they are "confident" in their position on the validity of the meeting and its decisive outcome, which will now be presented to the Karnataka High Court in line with due process.
Byju's, on the other hand, maintained that all resolutions passed during the EGM were "invalid and ineffective."
A company spokesperson said these resolutions were voted upon without the valid constitution of a quorum, as stipulated in Byju's Articles of Association, which require at least one founder-director to participate in the meeting.
Since Byju Raveendran, his wife Divya Gokulnath, and his brother Riju Raveendran—who make up the board—skipped the meeting, the quorum was never legitimately established, rendering the resolutions null and void, according to the company.
Byju's also alleged that only 20% of shareholders attended the EGM. "Resolutions passed merely request the board to consider recommendations and don't have any binding effect," it said.
(This is a developing story.)
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