‘I continue to remain CEO’, says Byju Raveendran rebutting dismissal rumours

Byju Raveendra on Saturday issued a statement via email to his employees affirming his position as the chief executive officer (CEO) of the company.

This comes a day after the extraordinary general meeting (EGM) of BYJU'S shareholders, which passed resolutions for the removal of Byju Raveendran from his CEO position.

“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. Put differently, it is “business as usual” at BYJU’S,” Raveendran wrote in the email to employees, which has been seen by YourStory.

“The rumours of my firing have been greatly exaggerated and highly inaccurate,” he said.

In the EGM held on February 23, shareholders passed all resolutions presented for a vote, including calling for a change in the leadership at the troubled company as well as reconstitution of the Board.

The BYJU’S family trio—Founder and CEO Raveendran, Co-founder Divya Gokulnath, and his brother Riju Ravindran—all current members of the company’s Board—did not participate in the EGM.

“The governance of our company is anchored in the Articles of Association and the Shareholder Agreement, further reinforced by the prevailing company law. These documents collectively form the constitutional backbone of our operations, setting out the rules and procedures by which we must abide,” Raveendran said.

“At yesterday’s EGM, a lot of these essential rules were violated. This means that whatever was decided in that meeting does not count, because it didn’t stick to the established rules,” he added.

After the EGM, Prosus, one of the key investors of BYJU’S, said that “shareholders unanimously passed all resolutions put forward for a vote”.

Raveendran countered in his email, “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% of shareholding) voted in favour of the resolution.”

The EGM was convened by investors, including General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, Peak XV Partners, SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina, and T Rowe Price Associates.

Raveendran noted that the firm’s SHA grants the authority to modify the board’s composition, the management team, and the CEO’s role exclusively to the board, not to a group of shareholders. He also highlighted the interim relief granted by the Karnataka High Court.

On February 21, the Karnataka High Court issued an interim order stipulating that decisions taken by BYJU’S shareholders during the EGM on February 23 will not be implemented until the next hearing scheduled for March 13, 2024.

Raveendran further noted the company’s rights issue has seen an overwhelming response.

The $200-million rights issue, initiated last month at a 99% lower valuation, is likely to serve as crucial financial support for the cash-strapped edtech firm, offering the necessary capital to address immediate liabilities.

Certain investors of BYJU'S have filed a lawsuit at the NCLT’s Bengaluru bench, alleging oppression and mismanagement by the company’s management. They seek the removal of founders, including Raveendran, the appointment of a new board, and the invalidation of the recent rights issue.