Edtech major BYJU'S will form a board advisory committee (BAC) to advise and guide CEO Byju Raveendran, shareholders of the company were informed.
According to Business Standard, the committee will have independent directors with credible backgrounds and relevant experience from diverse corporate fields.
The primary purpose of the committee will be "to provide advice and guidance to the CEO on matters pertaining to the composition of the board and the governance structure suitable for a company of Byju’s scale, size, and performance aspirations," Business Standard quoted a source as saying.
The investors were also told that a favourable outcome is expected from the ongoing negotiations with Term Loan B leaders.
There have been rumours that at the emergency general meeting (EGM), there was a demand for the ouster of Raveendran as CEO as troubles continue to mount for the company. However, Saurabh Gupta, managing partner at DST Global, clarified that there was no such demand. "There was no discussion on potential CEO change. This topic never came up and was not on the EGM agenda," Gupta was quoted as saying.
In 2020, BYJU'S had raised $122 million from investment fund DST Global, headed by Israeli tech investor Yuri Milner.
BYJU'S, on Tuesday, said its promoters re-invested the entire amount raised by them through secondary sale of shares in the company.
According to private market intelligence firm PrivateCircle Research, BYJU's promoters—Byju Raveendran, Divya Gokulnath and Riju Raveendran—together sold shares worth around $408.53 million in 40 secondary transactions since 2015.
"The promoters of BYJU'S have reinvested the entire amounts raised from secondary sales into the business for purposes of scaling it over the years," BYJU'S said in a statement.
—With PTI inputs