A consortium of shareholders, holding over 30 per cent stake in Byju’s, is considering drastic measures if the upcoming extraordinary general meeting or EGM fails to produce a resolution to the company's financial woes.
According to the business standard sources, if the EGM, scheduled for next Friday, doesn't result in an amicable settlement or faces further delays, shareholders may approach the National Company Law Tribunal or NCLT seeking a management change.
Earlier this month, these concerned shareholders issued a notice calling for the EGM to address "persistent issues," including a demand for a change in management. The proposed overhaul of the board would involve the removal of Byju Raveendran from his position as CEO and his relinquishment of operational duties.
Moving mountains for months to make payroll, says Byju
BYJU'S had floated rights issue to raise USD 200 million at over 99 per cent lower valuation compared to its peak valuation of USD 22 billion in March 2022.
According to reports, Edtech major Think and Learn released January's salary of the staff with company's Founder and CEO Raveendran Byju reaching out to employees for their support during the firm's challenging phase.
BYJU's founders and family members had earlier pledged their house to pay the salary of the employees as the firm continues to face a liquidity crunch.
"I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve. Everybody has made sacrifices, everybody has grappled with decisions they never desired to make, and everybody is a little bit weary in this battle, but nobody has chosen to give up," Byju said in a letter to employees.