Byju’s CEO Faces Legal Battle as Investors Seek Removal

Byju's CEO Under Fire: Investors Seek Removal in a High-Stakes Legal Fight

The Karnataka High Court is now at the center of a pivotal decision regarding Baiju Ravindran, the founder, and CEO of the troubled edtech firm Byju's. Recent developments have seen a group of investors, who collectively hold a majority of Byju's shares, vote to remove Ravindran from the company's board of directors. This move has escalated further with investigators submitting a request to the National Company Law Tribunal (NCLT) seeking Ravindran's removal.

However, Ravindran has contested this decision by appealing to the Karnataka High Court, arguing that the Extraordinary General Meeting (EGM) held by the investors to pass this resolution was conducted illegally. The High Court has agreed to hear Ravindran's plea on March 13, and until then, it has been stated that the proceedings of the EGM and the resolution passed therein will remain invalid. As a result, the fate of Baiju Ravindran at Byju's hinges on the upcoming legal proceedings in the High Court.

Investors have cited various reasons for their motion to remove Ravindran, including claims of governance lapses and financial transaction mishandlings under his leadership. Additionally, there are demands to remove other directors, including Ravindran's wife, Divya Gokulnath, and his brother, Riju Ravindran. This development signifies a significant shift in the relationship between Byju's top investors and the company's leadership.

The Byju's EGM, called by prominent investors such as Dutch investment firm Prosus, General Atlantic, and Peak XV Partners, was part of a larger effort to separate Byju's from its parent company, Think and Learn, which is headed by Ravindran. This move reflects the investors' concerns about the current management and their desire for a change in leadership to steer the company in a new direction.

The legal battle now unfolding in the Karnataka High Court is crucial for determining the future of Byju's course. If Ravindran proves that the EGM was conducted improperly, he may retain his position and authority within the company. However, if the court rules against him, it could mark the end of his tenure as the CEO of Byju's.

The outcome of this legal dispute will have far-reaching implications for Byju's, its employees, customers, and stakeholders. The uncertainty surrounding the company's leadership and future direction underscores the gravity of the situation. As the legal proceedings progress, all eyes will be on the Karnataka High Court, awaiting its decisive verdict that will shape the next chapter in Byju's saga.