Don't give effect to EGM resolution till March 13: HC to Byju's shareholders

Byju

The Karnataka High Court has passed an order asking Byju’s shareholders not to bring in effect any resolutions expected to be passed during the extraordinary general meeting (EGM) organised by select investors of the edtech giant Byju’s until the final hearing of its plea.

Byju’s filed a petition under section 9 of Arbitration and Conciliation act asking the court to restrain its shareholders from holding the EGM on February 23.

The next hearing in the matter is scheduled on March 13, sources told Moneycontrol. They added that the EGM will happen as planned but the outcome of the meeting will be subject to the final hearing of the petition. The order does not allude to a stay on the meeting, rather indicates that any resolution passed at the EGM cannot be in effect until the next hearing.

This comes ahead of an extraordinary general meeting later this week that a few of Byju's largest investors have called, on February 23, in a bid to oust the company's leadership and reconstitute its Board.

Among investors who have called for the EGM include General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, Peak XV Partners (formerly Sequoia Capital India & SEA), SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina, and T. Rowe Price Associates.

Earlier on February 21, the embattled edtech company's founder and CEO Byju Raveendran wrote a letter to its shareholders and said that the rights issue floated to raise $200 million, at a valuation cut of 99 percent, has been fully subscribed.