Pooja Mahabadi, Pune
In a very significant discussion, an assembled consortium consisting of four investors has initiated legal action against the co-founder Raveendran and his family members for poor management of the company. It was filed before the Bengaluru bench of the National Company Tribunal (NCLT), the suit talks about oppression and mismanagement. Their claims demand the removal of the company’s co-founder as they see him unfit to oversee its operations.
This movement has created trebles in the investor community about the direction the company is going to take and its strategic vision, Byjus being one of the big fish in the education-technology sector has created immediate tension in the market.
To further elucidate the current scenario the case is taking, the legal action aims to invalidate the recently completed rights issue, just as the lawsuit explains.
The investors are trying to get Raveendran and his family members off the board of investors claiming that they failed the management in operations, additionally, they have requested a forensic audit as part of the plea submitted to the National Company Law Tribunal (NCLT) on Thursday evening, as stated in the court filing.
The submitted plea is pushing to declare the current management unfit to lead the company and wants to appoint a new CEO and board of directors. This move is their response to the underlying dissatisfaction with the existing leadership and their strong desire for a change in administration looking at the present situation at hand.
The plea further asks for a forensic audit and clear direction by the existing administration to share the records with the investors.
The recent updates say that the petition requests the dissolving of the latest USD 200 million rights offer and urged the company to refrain from any corporate actions that could harm the rights of the investors in any form.
The petition was signed by four key investors- Prosus, GA, Sofina, and Peak XV- supported by others like Tiger and Owl Ventures. The plea is trying to uphold the integrity of the company and not harm the stakeholders.