Four investors of Byju’s have filed a suit against the edtech firm’s founder Byju Raveendran and the top management at the National Company Law Tribunal in Bengaluru, reported news agency PTI.
The investors have cited oppression, and mismanagement by Byju’s CEO and the top management. They have asked the NCLT to declare Byju Raveendran unfit to run the embattled edtech firm.
The investors have also sought a forensic audit of the firm along with the appointment of a new board.
Furthermore, the investors have asked NCLT to declare the rights issue as void.
For several months, some major investors in Think and Learn Private Limited, the parent company of Byju’s, have been calling for the removal of Raveendran and his family members from their leadership positions.
However, the resolutions adopted at today's EGM will not count as Byju's has already obtained a stay order on the same from the Karnataka High Court. Raveendran said in a letter to shareholders that the EGM is "procedurally invalid".
Raveendran also made it clear that he and other board members will not attend the "invalid" EGM.
"It is with firm resolve that I inform you that neither I nor any other Board member will attend this invalid EGM. Under the AOA and the SHA, the attendance of at least one of the Founders is necessary to form the quorum for a valid EGM," Raveendran wrote in a letter to shareholders.
