Byju's Founder Calls EGM to Address Company Issues, Announces Board Advisory Committee
BYJU'S Announces New Round of Layoffs as Part of Cost Reduction Measures
Byju Raveendran, the founder of edtech company Byju's, organized an extraordinary general meeting (EGM) on July 4 to tackle ongoing issues following the resignations of key directors and the auditor. During the meeting, Raveendran revealed plans to establish a Board Advisory Committee (BAC) composed of independent directors with diverse corporate backgrounds. The BAC will provide guidance on matters related to the board's composition and the company's governance structure. Raveendran informed shareholders that another EGM would be held in approximately three weeks to discuss the BAC's members and composition.
Shareholders, including investor representatives, attended the meeting and raised questions concerning various topics such as the Aakash IPO timeline, the company's audit, progress on the TLB resolution, and fundraising efforts. Byju's has been in a dispute with its term loan B lenders since December 2022, with lawsuits filed by both parties in US courts. Raveendran expressed optimism about reaching a mutually acceptable resolution through active and constructive discussions with the bondholders.
The newly-appointed CFO, Ajay Goel, shared that the company's auditor, BDO, has initiated audits for Aakash Educational Services, WhiteHat Junior, Think & Learn, and the consolidated group. Although the audit for most subsidiaries for FY22 is complete, the audit for Aakash, WhiteHat Junior, and Think & Learn is ongoing, aiming to optimize timelines. Goel also mentioned that BDO has allocated significant resources for the audit process.
Divya Gokulnath, Raveendran's wife and director at Byju's, updated shareholders on the company's media outreach and external communication activities. She highlighted that an independent agency measured the overall social media sentiment for Byju's as 82 percent positive in the past week.
Earlier reports suggesting investor discontent and discussions about Raveendran's removal were denied by Byju's and independent investor representatives. Last month, three key directors representing major shareholders, along with the auditor Deloitte, resigned from Byju's board due to differences with Raveendran and delays in releasing the company's FY22 results.
By convening the EGM and forming the BAC, Byju's aims to address company issues and strengthen its governance structure under the guidance of experienced independent directors.
