Aggrieved Byju's investors to hold EGM today amid legal tussle

Investors of beleaguered edtech major Byju's will hold another extraordinary meeting on Friday, March 29. The meeting, scheduled to commence at 10 AM IST, aims to secure shareholders' approval for expanding the authorised share capital of the company, following a $200 million rights issue, news agency PTI reported, quoting sources.

The dispute between Byju's and a consortium of investors, notably comprising Prosus, General Atlantic, Sofina, and Peak XV, has escalated, with legal battles unfolding in various forums. The bone of contention revolves around governance issues and alleged mismanagement by Byju's founder and CEO, Byju Raveendran, prompting investors to seek recourse through the National Company Law Tribunal (NCLT).

In an attempt to boost transparency and accountability, Byju's investors have demanded access to Byju's financial records, a request greenlit by the NCLT Bangalore bench on Thursday. This access, they argue, is pivotal to evaluating the company's financial health and decision-making processes.

Despite claims by investor sources of substantial support for proposed resolutions, including a management overhaul and forensic investigation into acquisitions, Byju's insiders contest these assertions, indicating a lesser degree of backing for such actions, the PTI report said.

In response to the earlier EGM called by investors, Byju's has taken legal recourse, contesting the validity of the meeting on procedural grounds. The company contends that the meeting lacks the requisite quorum and the presence of mandatory founder directors, as stipulated by its Articles of Association.

(With PTI inputs.)