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NEW DELHI: Four Byju’s investors has filed a lawsuit against the management of company before Bengaluru bench of the NCLT. They are seeking to declare the founders, including CEO Byju Raveendran, as unfit to run the company and appoint a new board. The investors have also requested a forensic audit of the company. The plea has been filed to prevent value erosion for all shareholders and to preserve worth for other stakeholders, such as employees and customers.
The investors, including Prosus, GA, Sofina, and Peak XV, have raised concerns about financial mismanagement by the founders, including the loss of control of Aakash and default on Byju’s Alpha (TLB loan).They have also highlighted prolonged corporate governance issues, such as the non-hiring of a CFO and independent director.
The lawsuit also addresses alleged regulatory non-compliances, oppressive nature of the rights offer, and unauthorised corporate actions regarding the acquisition of Singaporean edtech company Northwest Education Pte. It also mentions inter-corporate loans on undisclosed terms and multiple insolvency petitions filed by BCCI, TLB lenders, and Surfer Technologies Pvt Ltd.
The investors are seeking the ouster of Raveendran and his family from the Byju’s board through an extraordinary general meeting of shareholders. They want to protect the rights of all shareholders and ensure the company’s sustainable growth.
In addition to declaring the present management as unfit, the investors are demanding the appointment of a new CEO and a new board. They also want the management to share information with the investors and refrain from taking any corporate actions that could harm the interests of the shareholders.
The plea filed before the NCLT aims to hold the management accountable for their actions and bring about necessary changes to safeguard the future of Byju’s. The investors are committed to transparency, good governance, and the overall well-being of the company.
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