[Samurai]

Originally Posted by RT13

They finally managed to kick him (and his cronies out)! Albeit, kicking and screaming it appears

Not yet.

While major investors have voted for the removal of Byju Raveendran as CEO of the company, it will remain on hold until March 13 as Byju Raveendran had filed a petition against the decision of investors to call for the EGM.

On Wednesday, the Karnataka High Court ruled that any resolutions passed during the EGM would be suspended till the next hearing, but declined to halt proceedings.

Anticipating the outcome of the EGM, Byju's had already issued a statement.

“The resolutions ratified during the recently held EGM — which saw participation from a select group of shareholders — stand as invalid and non-binding,” Byju’s said.

I find this really strange. How can a bunch of minority shareholders defy the decision of the majority in a private limited company? And the court has gone along with it.

[RT13]

Originally Posted by Samurai

How can a bunch of minority shareholders defy the decision of the majority in a private limited company? And the court has gone along with it.

Wow! Bizarre!! The plot thickens.

Well, not to be a hater, but we do live in incredibly troubled times and when a few billion hang in the balance, a few crores in the right (or wrong) places to delay/derail/dodge matters is nothing I suppose. If you can’t win in the boardroom, tie it up in our Byzantine legal system and you’ll buy enough time for just about anything.

[airguitar]

Meanwhile, man purportedly takes TV from Byju's office in lieu of a refund that was not completed by Byjus.

https://www.hindustantimes.com/busin...660563072.html

[whitewing]

Originally Posted by Samurai

I find this really strange. How can a bunch of minority shareholders defy the decision of the majority in a private limited company? And the court has gone along with it.

The board now constitutes of Byju, his wife and brother. The board representation from other major investors having resigned. I suppose there still are one or two independent members.
The board meetings are now a family get together :-)

I suppose they now get a free hand with any decision they want to take. Including not calling an EGM, calling for a rights issue at 200million valuation from earlier 20+billion valuation.
If the rights issue goes through, depending on how much Byju puts up (and other skip putting in money), he may endup becoming the majority holder again!

This article details out the reasoning https://boringmoney.in/p/investors-r...ssue-sue-byjus

[reverse_gear]

Originally Posted by whitewing

This article details out the reasoning https://boringmoney.in/p/investors-r...ssue-sue-byjus

This is absolutely right. The thing is, under Indian Companies Act, a rights issue to all existing shareholders can be pursued with Board approval alone (it does not require shareholder approval); but a targeted placement to any investor requires shareholder approval. Once you resign from the Board, you are handing over the initiative to the founders and signaling that you are willing to write off your entire investment. Makes it harder to salvage if you have second thoughts and want to take control of the company.

Of course, Byju may run into issues with SFIO, ED, RBI and every other acronym'ed regulator around, but that's a separate matter entirely.

[airguitar]

https://www.indiatoday.in/business/s...675-2024-03-12

Byju's has asked all of their employees to start working from home immediately and has vacated all of its office spaces barring its headquarters at IBC, Knowledge Park, Bengaluru.

[GTO]

The latest Fortune magazine's theme is UniCorpses. While I bookmarked my favourite articles from there, I was just thinking of all the big name companies that are going bust as the endless & mindless tap of funding has dried up.

- GoMechanic imploded

- Byjus is in the ICU

- Droom.in (who even goes there) has been talking of "cutting losses"

- PayTM is in deep trouble over its core business models

- ZestMoney shut down

We're definitely going to see a lot more bankrupt startups as some sensible thinkers enter the boardroom. I don't even understand how brands like ShopClues etc. will survive.

[madrasilemon]

Happened to check what is droom.in after seeing GTOs post above. Perplexed to see that apart from bikes, scooters and cars, they also sell planes. At listed rate of Rs. 45 crore, the deal looks inviting. Description of the plane is even more fabulous - "This is a pre-owned Hawker 900XP Planes with a engine. It is a Planes". LOL.

[SnS_12]

US bankruptcy court has imposed penalties on Riju Ravindran, director of the etech major, for contempt of court after he refused to “disclose or ascertain the location of $533 million in term loan proceeds," a Bloomberg report said

https://www.cnbctv18.com/business/st...416484.htm/amp

[Dry Ice]

Originally Posted by GTO

…
- Droom.in (who even goes there) has been talking of "cutting losses"
…

Originally Posted by madrasilemon

…
Description of the plane is even more fabulous - "This is a pre-owned Hawker 900XP Planes with a engine. It is a Planes". LOL.

It’s bonkers!

Free roadside assistance for The Planes

[DriverLess]

"In a significant development in the complex bankruptcy proceedings involving a subsidiary of BYJU’s, a federal judge has offered to drop the arrest order for a Florida hedge fund manager, provided he assists in locating $533 Mn that the Indian edtech company is accused of attempting to conceal."

https://inc42.com/buzz/byjus-bankrup...missing-533-mn

[warrioraks]

Prosus marks down Byju's investment value to zero - In a slideshow for investors, the internal rate of return (IRR) from its investment in Byju's is marked at minus (-) 100 percent.

https://www.moneycontrol.com/technol...-12754801.html

[DriverLess]

This story is like replay after losing all the lifelines in a video game. ReshaMandi's crash is confusing/shady to say the least.

“The management is trying to recreate ReshaMandi in another startup as they don’t want to be associated with the previous corporate entity which ran ReshaMandi. So they are starting afresh in another company (Genzr) after burning all the funds raised for ReshaMandi,”

https://inc42.com/features/inside-th...0-mn-collapse/

[DriverLess]

"Jha also admitted that Saarthi.ai didn’t deposit TDS on behalf of employees for the last two fiscal years."

https://entrackr.com/2024/08/chaos-a...assport-theft/

Employers are talking about this so casually?

--
Question:

How do employees file their returns if TDS has not been deposited by the employer? How is the company providing Form-16 without depositing TDS?

[m8002?]

This time its CRED. Someone won a jackpot for 3+ lakhs. But CRED just cancelled it telling it was glitch.

https://www.news18.com/viral/man-win...h-9043907.html

Sangal added, “I filled out the form to receive the items and they took my PAN to pay the TDS on the jackpot. But a few minutes back I got a call from the CRED team that they had to cancel the jackpot because of some technical issue and they crediting back the coins and good will gesture INR 1K cashback.”

Anybody aware of the revenue model of CRED?