Major investors of Byju's have issued a statement expressing deep concerns about the company's future stability under its current leadership and board composition. Consequently, they have initiated proceedings to convene an extraordinary general meeting (EGM) in accordance with the Companies Act, 2013.
The call for an EGM follows previous notices sent to the Byju's Board of Directors in July and December 2023, which were reportedly disregarded. The resolutions proposed for the EGM include addressing governance, financial mismanagement, and compliance issues, restructuring the Board to diminish founder control, and changing company leadership.
This move by shareholders comes after ongoing efforts to engage with Byju's to resolve persistent issues related to corporate governance and mismanagement, particularly following the resignation of directors nominated by Prosus and other shareholders in June 2023.
Despite acknowledging the efforts of an independent advisory council in addressing some challenges, shareholders remain apprehensive about the company's future. They emphasize their belief in India's potential and the transformative role of educational technology, expressing a commitment to safeguarding the long-term interests of Byju's and its stakeholders.
The call for an EGM underscores the gravity of concerns among investors regarding Byju's leadership and governance, signaling potential significant changes ahead for the prominent education technology company.