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Byju's in power struggle as investors fight to oust founder

Tensions Flare Between Byju's and Investors: Governance, Finances, and Leadership in Dispute

Byju's, once India's most valuable startup, finds itself embroiled in a public dispute with some of its biggest investors. The disagreement centers around governance, financial management, and leadership.

Investors, including Prosus, General Atlantic, and Chan Zuckerberg Initiative, have expressed concerns about outstanding governance issues, financial mismanagement, and compliance problems. Additionally, they seek a change in leadership structure and board composition. This move marks their **third attempt** to call for an Extraordinary General Meeting (EGM) to address these concerns.

Byju's, on the other hand, asserts that their shareholder agreement doesn't grant investors the right to vote on leadership changes. They also emphasize their efforts to resolve the situation, including forming a working group with investors and implementing business restructuring measures. Additionally, they received "encouraging responses" for their proposed $200 million rights issue, aimed at raising crucial capital.

However, Byju's leadership also blames "select investors" for creating an "artificially induced crisis" and exploiting it to push for leadership changes. They claim this led to a delay in January payroll and impacted business continuity.

Key points highlighted:

* Investors raise concerns about governance, finances, and leadership.

* Investors want an EGM to address these issues and seek leadership change.

* Byju's denies investor voting rights on leadership and emphasizes their efforts to resolve the situation.

* Byju's blames "select investors" for a fabricated crisis and its consequences.

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