 "Karnataka HC extends interim protection for Byju's CEO amid ousting threat")
The Karnataka High Court has granted an extension of interim protection to Byju's CEO, Byju Raveendran, until March 28, shielding him from potential ouster decisions by foreign investors, according to a report by Bar and Bench.
The court's decision comes in response to an Extraordinary General Meeting (EGM) called by majority shareholders last month, aiming to remove Raveendran from his position.
Advocates of Think and Learn argued that the EGM had not followed the procedures outlined in Section 100(3) of the Companies Act, 2013.
Investors, including Prosus, General Atlantic, and Peak XV, had voted on February 23 to dismiss Raveendran and his family from Byju's. Four investors of Byju's, had also simultaneously filed a mismanagement suit in the National Company Law Tribunal (NCLT), seeking Raveendran's removal from the board of directors.
Byju's had approached the Karnataka HC seeking a stay on the EGM. The High Court, however, refused to hold the emergency shareholder meeting; instead, it only gave interim relief. The interim order decreed that any decisions made by shareholders during the upcoming EGM would not be implemented until final orders were issued regarding Byju's petition challenging the meeting.
Following the EGM, Raveendran reassured his staff by communicating that he would continue to serve as CEO. He affirmed that despite media reports suggesting otherwise, there were no changes in management or the board, emphasising that it was "business as usual" at Byju's.
Since then Byju's has closed down all its regional offices and asked its (nearly 15,000) employees to work from home, to streamline operations and reduce expenses.