BYJU’S investors have filed an oppression and mismanagement suit against the management to declare its founders as unfit to run the company, appoint a new board, and declare the rights issue as void, among other reliefs, during the extraordinary general meeting (EGM) held on Friday, sources told DealStreetAsia.
The petition, which is signed by four investors —Prosus, General Atlantic, Sofina, and Peak XV — along with support from other shareholders including Tiger Global and Owl Ventures, has been filed to “prevent value erosion for all shareholders as well as preserve worth for other stakeholders, employees, and customers,” sources said.
“The company has not received any formal intimation of any such petition being filed in the NCLT. It cannot comment on rumours on the same. Indian regulations stipulate due process for conducting an EGM, intimation of petitions being filed in NCLT, etc. But certain shareholders prefer to manufacture a media spectacle as opposed to following due process. If such a petition has been filed, the company shall respond to the same as per applicable law and due process,” a BYJU’S spokesperson replied in response to DealStreetAsia’s request for comment.
Earlier this month, shareholders had requested to convene an EGM to address the need for changes to combat a range of issues that currently embroil the edtech firm.