Karnataka High Court refuses to stay BYJU’S EGM on February 23

In an interim order, the court said any decision taken by the shareholders of the petitioner company in the EGM should not be given effect to till the next hearing.


Published Feb 22, 2024 | 8:38 AMUpdatedFeb 22, 2024 | 8:38 AM

Karnataka High Court

The High Court of Karnataka on Wednesday, 21 February, refused to stay an emergency shareholder meeting called by select investors of Think and Learn Pvt Ltd — the owner of BYJU’S — to oust the company’s Founder and CEO Byju Raveendran and his family from the leadership in the edtech firm.

BYJU’S had approached the high court seeking a stay on the EGM but the court only gave an interim relief that any resolution passed at the EGM on Friday, 23 February, cannot be implemented before the next court hearing.

“It is further submitted that the conditions for convening the Extraordinary General Meeting (EGM) are not complied and no notice is issued as contemplated under Section 100 (3) of the Companies Act 2013,” the court order said.

It passed an interim order that “the decision, if any taken by the shareholders of the petitioner company in the EGM scheduled on February 23, 2024, shall not be given effect to, till the next date of hearing,” the order said.

Related: BYJU’S $200 million rights issue fully subscribed

Rights issue fully subscribed

Meanwhile, BYJU’S top official said the company’s US$200 million rights issue has been fully subscribed and asked all shareholders to participate in the “renewed mission”.

Think and Learn Private Limited, which operates under BYJU’S brand name, has floated a $200 million rights issue at less than 99 percent enterprise valuation compared to its peak valuation of $22 billion.

BYJU’S CEO has offered to restructure the Board and appoint two non-executive directors to the Board by the mutual consent of the founder and shareholders after the audit of financial year 2023 is complete by March-end.

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