Byju's EGM: Verification of attendees, phishing attack delay meeting process

Byju’s EGM: Verification of attendees, phishing attack delay meeting process

The Extraordinary General Meeting (EGM), organised by investors of Byju’s parent Think & Learn Pvt. Ltd, faced a number of disruptions on Friday after a few people allegedly sabotaged the meeting by various means, sources from the investors’ side said. Earlier, investors had raised concerns over various issues, ranging from mismanagement in the edtech to failure to enforce the company’s rights related to the acquisition of Aakash Educational Services Ltd (AESL).

Sources said on Friday the meeting was delayed for more than an hour as the verification of attendees took time as hundreds of individuals attempted to join the Zoom video-conferencing link of the EGM. From 170 people who tried to attend the EGM, the number of total joinees was reduced to 37 after the verification of pre-authorised names.

“The meeting started with a phishing attack to attempt to disrupt the proceedings. Attendees received a random notification from an unidentified source that the meeting is cancelled,” one of the investors told the Economic Times.

“Several Byju’s representatives tried to join in without process and ambushed the meeting. When asked to introduce themselves, there was no response, this was clearly an ambush to delay the proceedings but the meeting is underway as planned,” said another attendee.

Earlier it was reported that founder Byju Raveendran, his wife, Divya Gokulnath and brother Riju Raveendran, have reportedly decided to skip the Friday EGM, which has been called to oust the top management. Raveendran and family own 26.3 per cent in the company.

Investors’ side, however, said it will be sticking to the EGM. “EGM is valid and fully in accordance with applicable law and will continue as per plan. To say the EGM won’t have quorum if founders don’t attend would be incorrect,” a statement from the investors side said.

The Karnataka High Court on Wednesday refused to stay the EGM, called by shareholders collectively holding more than 32 per cent stake in Byju’s.

The shareholders said that the HC had allowed EGM to happen as planned but the outcome of the meeting will be subject to the final hearing of the petition.

Byju’s moved court and filed a petition under Section 9 of Arbitration and Conciliation act asking it to restrict the select shareholders from holding the EGM on February 23.

In a statement, the edtech said that this order came after “BYJU’S filed a petition under Section 9 of The Arbitration and Conciliation Act, 1996, arguing that certain investors, including had violated the Articles of Association (AoA), the Shareholders’ Agreement (SHA), and the Companies Act, 2013 by calling for an EGM on 23 February 2024.”

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