Updated February 25th, 2024 at 16:51 IST

BYJU’S founder writes to employees, says ‘business as usual’

The embattled edtech’s founder refuted reports of his ouster from the company, calling them exaggerated and inaccurate

Reported by: Business Desk
Byju Raveendran | Image:Instagram
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Embattled edtech BYJU’S founder and CEO Byju Raveendran has refuted rumours of being ousted from the company.

Raveendran addressed company employees in a letter where he called the investor claims as ‘completely wrong.’

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“The claims made by a small group of select minority shareholders that they have unanimously passed the resolution in the EGM is completely wrong. Only 35 out of 170 shareholders (representing around 45 per cent of shareholding) voted in favour of the resolution. That in itself shows the very limited support that this irrelevant meeting received,” Raveendran said in the letter accessed by PTI.

He said a lot of essential rules were violated in the Extraordinary General Meeting (EGM) conducted by its investors Prosus, General Atlantic, PeakXV and Chan Zuckerberg.

“Just as you can't change the rules of a game midway without agreement from all players, we can't alter how our company is run without following these strict guidelines,” he added in the letter.

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Whatever was decided in that meeting does not count, because it didn't stick to the established rules, he added.

Raveendran also cited the Karnataka High Court order, according to which decisions made in the EGM cannot be implemented until the next hearing on March 13.

Raveendran said he believes that the truth will prevail inevitably despite a “relentless” media trial.

''I am writing this letter to you as the CEO of our company. Contrary to what you may have read in the media, I continue to remain CEO, the management remains unchanged, and the board remains the same,'' he said, adding it is ''business as usual'' at BYJU'S. 

''To reemphasise, the rumours of my firing have been greatly exaggerated and highly inaccurate,'' Raveendran said. 

He said the meeting was convened without proper procedure set out by the law, what he claimed were ''key discrepancies'' at the EGM. They also violated the company's Articles of Association. 

''To pass any resolution the meeting needs to have a proper quorum, a set of people who are mandatory. Our articles are clear on the quorum requiring the presence of at least one founder director. Consequently, any resolutions taken at the meeting are not enforceable as per law,'' he said.

''The claims made by a small group of select minority shareholders that they have unanimously passed the resolution in the EGM is completely wrong. Only 35 out of 170 shareholders (representing around 45 per cent of shareholding) voted in favour of the resolution. That in itself shows the very limited support that this irrelevant meeting received.''

Raveendran, his wife and brother, who are the only three members on BYJU'S board did not attend the EGM called by six investors who hold over 30 per cent in the parent company of BYJU'S - Think and Learn Private Limited. This comes as the Enforcement Directorate put out a Lookout Notice against Raveendran on FEMA charges for over Rs 9,300 crore.

Among the seven resolutions including removing the current management, reconfiguration of the board and a third-party forensic investigation into acquisitions by the company, all of them were passed unanimously, according to investor Prosus.

 

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Published February 24th, 2024 at 20:06 IST