It has been reported that the parent company of Byju’s, Think & Learn Pvt Ltd (TLPL), has said that investors have no voting rights on the matter of changing the company’s chief executive officer (CEO).
Byju Raveendran, founder and CEO of the Ed-Tech company, has responded to statements made by select investors calling for an extraordinary general meeting (EGM) to replace him.
“With regards to these unfortunate circumstances, we would like to emphasize that the shareholder’s agreement does not give them the right to vote on a change of CEO or management,” said the company in a statement released on Friday.
Earlier this week, a consortium of key shareholders issued a notice to the company, requesting an EGM to address “persistent issues”. These shareholders will likely vote in an attempt to alter the board of directors of the company. This includes asking Raveendran to step down, sources said.
At the same time, the company is in the process of raising $200 million through a rights issue to fund the company’s expansion plans.
It has been explained to shareholders why this is so important, according to the company.
The company and our employees are paying the price for a stand-off triggered by some investors, as the company and our employees are suffering. As a result, we will prioritize this in our actions to ensure that our business continuity is maintained,” said the firm in its statement.
In just three days after launching the rights issue, the firm announced it had received commitments from investors that it would receive more than 100% of the money raised.
It will take 25 more days for this task to be completed. The company said that with such a deal, they would be able to make sure they had enough growth capital, as well as meet all operational liabilities.
As a result of the crisis, employees are experiencing a delay in their salary for January, which is being affected by the crisis. The firm in an email to employees blamed investors for this.
“Salaries will be disbursed this month with a slight delay due to the artificially induced crisis by these select investors,” said the statement.
“As many of you are aware, ‘Byju sir’ (Raveendran) has taken on the responsibility of paying our salaries personally over the past several months, even pledging his only home to ensure that we are financially secure during this period.
It is no different this month as well. Let us assure you that our salaries will be paid in a phased manner starting today (Friday) and will be completed by the following Monday.”
