which has come under the scanner for severe corporate governance lapses is planning to set up a board advisory committee (
) which will be tasked with advising the CEO on matters pertaining to the company’s governance structure and composition of the board, sources said.
“The BAC will serve as a working group consisting of independent directors with credible backgrounds and relevant experience from diverse corporate fields,” the startup’s founder and CEO Byju
told shareholders at the firm’s EGM (extraordinary general meeting) held earlier this week.
The company aims to hold another EGM in about three weeks during which the members and composition of the BAC is expected to be taken up for discussion.
The CEO’s communication to shareholders about the formation of a BAC comes at a time when the startup’s market credibility has taken a beating with the resignation of its auditor Deloitte and three board members. Already, the 18-month delay in filing its FY21 financials had provided enough reason for stakeholders to be worried. Byju’s which has raised about $5 billion in funding from investors has of late seen a series of valuation markdowns by its investors. In its latest markdown by Prosus, Byju’s valuation has been slashed to $5.1 billion from $22 billion at its peak.
Through the course of the EGM, Raveendran is also learnt to have updated shareholders on the ongoing negotiations with its lenders. Raveendran said that both parties involved in the issue are motivated to avoid legal proceedings and seek a resolution that benefits all involved parties. The company’s CFO Ajay Goel reiterated that the startup will close the audit of its FY22 results by the end of September and that of FY23 by the end of December.
Since October last year, Byju’s has fired 3,500 employees.