Byju: One day following the ed-tech company Byju‘s shareholders’ vote to remove founder and CEO Byju Raveendran from the board, the 44-year-old entrepreneur insisted that he is still the company’s CEO and that management is still in place.
Byju Raveendran Denies Dismissal in Staff Communication
He described the extraordinary general meeting (EGM) of shareholders on Friday as a “farce” and said that “rumours” of his dismissal from Byju’s “have been greatly exaggerated and highly inaccurate” in a letter to staff members.
“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.
Over 60% Vote to Remove Raveendran from Byju’s Board
Friday saw a vote by more than 60% of the company’s stockholders to remove Raveendran and his family from the board due to “mismanagement and failures” But Raveendran disagreed, claiming that many fundamental regulations had been “violated” in the EGM decision.
He wrote, “This means that whatever was decided in that meeting does not count, because it didn’t stick to the established rules…It is crucial for everyone to understand the specific issues that make this EGM a farce”.
Founder Highlights Lack of Participation in EGM
Since Byju Raveendran and his family believed the EGM to be “invalid,” they chose not to attend. The boss of Byju also pointed out in his email to the staff that a quorum was needed for the investor meeting, and that quorum required the participation of at least one Founder Director.
“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,” he further said.
Raveendran Confident Truth Will Prevail Amid Media Scrutiny
Furthermore, Raveendran stated that he is adamant that the truth would ultimately come to light despite the “relentless trial by the media”. Once a household name in the nation for ed-tech, Byju’s is now dealing with a number of issues, such as growing losses, a serious financial shortage, and a falling valuation.
