Edtech major has proposed the establishment of a Board Advisory Committee (BAC) to guide the company, mainly the CEO, regarding Board composition and the governance structure of the company.
“The BAC will serve as a working group consisting of independent directors with credible backgrounds and relevant experience from diverse corporate fields,” Founder and CEO Byju Raveendran said during an extraordinary general meeting (EGM) on July 4.
He mentioned that a follow-up EGM will be scheduled in around three weeks to address the discussion of the BAC’s members and composition.
In addition to highlighting the BAC formation, Raveendran updated the shareholders on negotiations with debt holders, expressing optimism for a mutually acceptable resolution while emphasising the shared commitment to avoid legal proceedings.
Meanwhile, Ajay Goel, CFO, BYJU’S, reiterated the ongoing engagement with newly-appointed auditors, BDO, for the audit process. He noted that subsidiary audits for F22 are mostly completed, while audits for Aakash, WhiteHat Jr, and Think & Learn Pvt Ltd are progressing simultaneously to optimise timelines.
The company aims to meet the previously communicated timelines, with the FY22 audit targeted for the end of September and the FY23 audit expected to conclude by the end of December.
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At the recent shareholders’ meeting, attended by a majority of the edtech firm’s shareholders, the CEO, CFO, and director also addressed questions on Aakash IPO timeline, audit timeline, TLB resolution progress, market share expansion prospects for BYJU’S, and upcoming fundraising plans.
These updates from the second shareholders’ meeting within a span of a few weeks come at a time when BYJU’S is dealing with multiple challenges, including the departure of its auditor, the resignation of three prominent board members, and conflicts with creditors over a $1.2-billion term loan B.
Last week, in an official address to the company’s employees, Raveendran acknowledged the challenges faced by the firm.
There were reports regarding the EGM where some investors allegedly called for the removal of Raveendran to accommodate a new interim CEO.
However, BYJU’S has refuted these claims, and independent investor representatives Saurabh Gupta, Managing Partner at DST Global; and Alan Kim, Managing Director, Ark Impact Asset Management; also denied any discussions of this nature taking place during the EGM.
Edited by Affirunisa Kankudti
