Byju’s proposes advisory board to seek guidance
Shareholders told of positive public sentiment about the edtech company on social media
Byju’s which is faced with a rough patch in recent times is likely to get a Board Advisory Committee (BAC) to provide guidance on matters related to the board's composition and governance structure. Rattled by the resignations of three key directors and the auditor, an extraordinary general meeting (EGM) was convened on July 4 to address ongoing issues.
Byju's founder Byju Raveendran, who convened the EGM informed shareholders about the formation of a BAC to provide guidance on matters related to the board's composition and governance structure. The EGM, media reports suggested was attended by a majority of Byju's 70+ shareholders. The meeting witnessed discussions on various topics including the Aakash IPO timeline, audit progress, TLB resolution, and fundraising efforts, news website Moneycontrol reports.
Byju's has been in a dispute with its term loan B lenders since December last year, resulting in legal proceedings in the US. Raveendran assured shareholders that active and constructive discussions are underway with the bondholders, expressing optimism about a mutually acceptable resolution. He emphasised the shared motivation to avoid legal proceedings and reach a resolution beneficial for all parties involved.
The newly appointed CFO Ajay Goel provided updates on the audit process. Byju's has engaged BDO as its auditor, who has already initiated the audit for Aakash Educational Services, WhiteHat Junior, Think & Learn, and the overall consolidated group.
However, the formal filing of BDO's appointment with the Ministry of Corporate Affairs (MCA) is still pending. Reports said Goel highlighted that significant resources have been allocated for the audit, with ongoing parallel audits for Aakash, WhiteHat Junior, and Think & Learn to optimise timelines.
Divya Gokulnath, director at Byju's, informed shareholders about the company's media outreach and external communication activities. New reports said that an independent agency measured the social media sentiment for Byju, indicating an 82 per cent positive sentiment in the last week.
Meanwhile, recent reports claiming that a group of investors had demanded the removal of Raveendran, the current CEO of the startup, have been vehemently denied by the company. The news outlet Inc42 reported that there was absolutely no discussion regarding the ouster, debunking the sensationalized rumours that had been circulating.
Saurabh Gupta, the managing partner at DST Global and an investor in the company, clarified that not a single conversation or proposal regarding the replacement of the CEO had taken place.