• Source:JND
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Byju's:  Four investors of Byjus have filed an oppression & misappropriation suit against the company's management in the Bangalore bench of the National Company Law Tribunal (NCLT) seeking to disqualify the existing founders from running the company, appoint a new board, declare the rights issue invalid and conduct a forensic audit, moneycontrol reported citing sources.

The moves come amid the investors held an extraordinary meeting on Friday to oust the founder and his family from the ed-tech firm. The meeting has been concluded and investors are waiting for the voting result.

The petition was signed by four investors – Prosus, GA, Sofina and Peak XV and supported by other stakeholders including Tiger, and Owl Ventures.

Also read: Byju's Investors Call Special Meeting Today To Decide Ravindran's Future As CEO

Concerns raised in the NCLT suit include financial misappropriation by founders, leading to loss of control over Aakash, Byju's Alpha (TLB Loan) default, non-appointment of CFO & Independent Directors, chronic corporate governance issues including the oppressive nature of the $200 million rights offer, regulatory non-compliance.

As per moneycontrol, the appeal sought to declare the just-concluded USD 200 million rights offer invalid and order the company not to take any corporate action that would infringe on investors' rights.

The petition also mentioned inter-corporate loans and multiple bankruptcy petitions filed by BCCI, TLB creditors and Surfer Technologies Pvt Ltd on undisclosed terms.

Byjus had earlier filed a petition under Section 9 of the Arbitration and Conciliation Act, seeking a restraining order by the Karnataka High Court from holding the EGM by shareholders. The court stated that the implementation of the resolutions that would be passed in the meeting would be subject to the final hearing on the petition on March 13.

The group of investors, who are holding the meeting, planning to restructure the board of directors to increase shareholder representation, include independent input and improve corporate governance, they said.

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