“The need for reconstitution arose as a few investors had to vacate the board seats due to their shareholding falling below a minimum required threshold, as per our SHA (shareholders’ agreement),” it said. The company did not elaborate on what the minimum threshold was in its SHA.
“We want to reassure all stakeholders that we are actively working towards constituting a diverse and world-class board commensurate with the company’s size and scale,” the company said, a day after it first denied ETtech’s report on the board resignations.
Also read | Byju’s breaking bad: Will Indian startups feel the aftershocks
Byju’s board departures come at a time when it is engulfed in multiple issues such as court cases with lenders, loan defaults and the much-delayed filing of its financial results for the year ended March 31, 2022.
After these exits, Byju Raveendran and his family members — Divya Gokulnath and Riju Raveendran — are the remaining directors. Together, they own 26-27% in the company. Peak XV Partners held around 6% and Prosus had a 9.67% share.
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Deloitte too has resigned as Byju’s auditor citing a delay in furnishing FY22 financial statement as it is yet to receive the same and then it would take time for it to audit those numbers. Following Deloitte’s exit, Byju’s said in a statement on Thursday that it had appointed BDO (MSKA & Associates) as its statutory auditor for five years from the fiscal year 2021-22.
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