Byju’s gets Karnataka HC relief on EGM resolutions

The Karnataka High Court (HC), in response to a petition filed by Think & Learn Pvt Ltd (the parent company of Byju’s), has passed an order stating that any resolutions proposed to be passed in the February 23 EGM called by select investors “as invalid until the final hearing and disposition of this petition”. However, the HC has allowed EGM to go ahead as scheduled.

Byju’s filed the petition under Section 9 of The Arbitration and Conciliation Act, 1996, arguing that certain investors, including 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, had violated the Articles of Association (AoA), the Shareholders’ Agreement (SHA), and the Companies Act, 2013 by calling for an EGM.

“In its petition, Byju’s highlighted that the purported reasons for the EGM, including the removal of Byju Raveendran as CEO and Chairman, as well as Divya Gokulnath and Riju Raveendran as Directors, were merely a smokescreen designed to disrupt the management, control, and functioning of the company,” Byju’s said in a statement.