Six investors in Think and Learn Private Limited, the company behind BYJU’s brand, have called an EGM to address governance, financial mismanagement, and compliance issues. They propose reorganizing the Board of Directors and changing leadership. General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands own 30% of BYJU.
According to sources, a group of six investors in Think and Learn Private Limited, the company behind BYJU’s brand, have called an extraordinary general meeting (EGM) to address concerns within the edtech giant and remove founders’ control.
The EGM notice’s investors, led by Dutch investment group Prosus, want to resolve governance, financial mismanagement, and compliance issues. They want to restructure the Board of Directors to eliminate founder control and change the company’s leadership.
The shareholder notice describes the EGM motions, emphasizing the need to address governance and financial challenges and remove founder control. BYJU’s investors include General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands, who own about 30%.
“The resolutions being put forward for the EGM to consider include a request for the resolution of the outstanding governance, financial mismanagement and compliance issues, the reconstitution of the Board of Directors so that it is no longer controlled by the founders of T&L and a change in leadership of the Company,” the note said.
A syndicate of BYJU shareholders demanded board meetings in July and December to discuss these issues, but the business reportedly ignored them.
Byju’s US subsidiary filed for Chapter 11 bankruptcy in Delaware. The entity listed its liabilities as $1 billion to $10 billion and its assets as $500 million to $1 billion in the court filing.
Byju’s has endured many obstacles, including lender bankruptcy. In recent months, the company has negotiated the repayment of a $1.2 billion term loan. These difficulties led its US unit to file for Chapter 11 bankruptcy.
Conclusion
Six investors in Think and Learn Private Limited, the company behind BYJU’s brand, have called an EGM to address governance, financial mismanagement, and compliance issues. The group, led by Dutch investment firm Prosus, wants to restructure the Board of Directors to eliminate founder control and change leadership. Governance and financial difficulties are resolved, removing founder control. A BYJU US subsidiary filed for Chapter 11 bankruptcy in Delaware, citing lender concerns and talks for a $1.2 billion term loan repayment.
