The Karnataka High Court extended interim relief to edtech giant Byju’s on Tuesday, staying the decisions made during the extraordinary general meeting of shareholders on Feb. 23. This move effectively safeguards Byju Raveendran, the company’s chief executive officer and chairman, from potential removal from the company.
The EGM, convened by key investors and shareholders including the Chan Zuckerberg Initiative, General Atlantic, Prosus Ventures, and Peak XV, aimed to discuss leadership changes within the company. The meeting’s resolutions, including the proposed removal of Raveendran, Divya Gokulnath, and Riju Raveendran from their respective positions, have been deemed ineffective until the next court hearing.
The Karnataka High Court had previously stayed the meeting’s effects after hearing a petition from Byju’s parent company, Think & Learn Pvt.
The petition asserts that the reasons for the EGM were merely a “smokescreen designed to disrupt the management, control, and functioning of the company”. Byju’s argued that the EGM was “devoid of merit” and an attempt to interfere with the ongoing rights issue.
The company filed the petition under Section 9 of the Arbitration and Conciliation Act, 1996, alleging that certain investors had violated the Articles of Association, the Shareholders’ Agreement, and the Companies Act, 2013, by calling for the EGM.
As the court continues to deliberate on the matter, the current order provides Byju’s with temporary respite, allowing its existing leadership to maintain control of the company amid the ongoing legal battle.