News Update

Karnataka HC extends Byju Raveendran’s interim protection until March 28

• ByStartupStory     |    March 14, 2024

The Karnataka High Court extended Byju Raveendran’s interim protection until March 28 against any potential ouster decision by foreign investors, according to Bar & Bench. Investors Prosus, General Atlantic, and Peak XV had voted to remove Raveendran and his family from Byju’s during an Extraordinary General Meeting (EGM) last month.

Before the EGM, Think and Learn sought relief from the Karnataka High Court, which issued an interim order stating that decisions made in the EGM would be subject to further hearing scheduled for March 13. “The decision, if any taken by the shareholders… shall not be given effect until the next date of hearing,” the High Court stated.

The court’s interim order came after advocates for Think and Learn argued that the EGM did not follow the procedure outlined in the Companies Act, 2013. The petition challenged the shareholders meeting, seeking to halt any decisions until the court made final orders.

Byju Raveendran reassured his staff in a letter following the EGM, stating, “Contrary to what you may have read in the media, I continue to remain CEO… It is ‘business as usual’ at Byju’s.” Raveendran’s communication came amidst uncertainty surrounding his position following the shareholders’ vote.

The legal battle stems from four investors filing a mismanagement suit in the NCLT, aiming to remove Raveendran from the board of directors. The mismanagement and oppression suit sought to oust Raveendran from the firm, sparking a contentious dispute over leadership at Byju’s.

The ongoing dispute highlights tensions between the majority shareholders and Raveendran, who faces potential removal from his position as CEO. The outcome of the court proceedings will determine the future leadership of Byju’s and its impact on the company’s operations.

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