A group of Byju’s investors have moved the NCLT against CEO Byju Raveendran, deeming him unfit to run the firm and seeking his ouster from the board. Four investors of edtech firm Byju’s have filed a mismanagement and oppression suit in the National Company Law Tribunal, seeking the removal of CEO and founder Byju Raveendran from the board of directors.
This comes when Byju’s investors are in the middle of an emergency meeting, ready to vote on the ouster of CEO Raveendran and his family from the board of directors of the company. Further, the suit filed by the shareholders also seeks a forensic audit of the company, appointment of a new board and the rights issue void.
These investors want the present management to be declared unfit to run the company. They want a direction to the management to share information with the investors. The plea also seeks the declaration of the just-concluded $200 million rights issue as void as well as a direction that the company should not take any corporate actions that will prejudice the rights of the investors.
The plea has been filed to prevent value erosion for all shareholders as well as preserve the worth for other stakeholders, including employees and customers.
The edtech firm in the last one year suffered other setbacks, including its auditor resigning, lenders beginning bankruptcy proceedings against a holding company and a US lawsuit disputing the terms and repayment of a loan.
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.