In a recent development, the Karnataka High Court has prolonged its interim directive regarding the dismissal of Byju’s CEO, Byju Raveendran. The court has urged shareholders of Byju’s to refrain from implementing any resolutions anticipated to be ratified during the February 23 extraordinary general meeting (EGM).
Consequently, the resolution from February 23, which involved the termination of Byju Raveendran by notable investors such as Prosus, General Atlantic, and Peak XV, will remain suspended until the next hearing scheduled for June 24. This extension marks the third time such a measure has been granted in this ongoing legal matter.
Earlier, on February 21, Byju’s had petitioned under Section 9 of the Arbitration and Conciliation Act, seeking a restraining order against its shareholders from conducting the EGM on February 23. While the High Court declined to halt the EGM, it directed investors not to enforce any resolutions until March 13.
Among the investors advocating for the EGM are prominent names like 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.
Meanwhile, amidst the legal proceedings in the Karnataka High Court, certain investors have approached the National Company Law Tribunal (NCLT) concerning Byju’s rights issue. Although the NCLT has not issued any directives on the matter, it instructed Byju’s to hold the proceeds in an escrow account. Additionally, Byju’s was urged to contemplate extending the deadline to safeguard the interests of investors.
