Extraordinary general meeting was a farce, Byju Raveendran writes to employees

MUMBAI: A day after a majority of Byju's investors voted to remove founder Byju Raveendran as CEO and restructure the board that includes his wife Divya Gokulnath and brother Riju Ravindran, the founder wrote a letter to employees stating that the extraordinary general meeting (EGM) was a "farce" and only 35 of 170 shareholders, representing around 45% of the shareholding voted in favour of the resolution.

"That in itself shows the very limited support that this irrelevant meeting received. Our Shareholder Agreement grants the authority to modify the board's composition, the management team, and CEO's role exclusively to the board, not to a group of shareholders. Recognising this, these few select investors have framed their resolution in a manner that requests the board to merely consider changes to the current board structure, rather than directly mandating it," Raveendran said in the letter which was sent to employees on Saturday evening.

TOI has reviewed a copy of the letter.

Investor sources said that shareholders collectively holding over 60% stake in the firm voted in favour of the resolutions. Raveendran said that he would "challenge" these illegal and prejudicial actions and assured employees that he continues to remain CEO, the management remains unchanged and the board remains the same.

Sources said that Byju's is weighing legal options and the company may hold a board meeting on Sunday.

Ready to Master Stock Valuation? ET’s Workshop is just around the corner!