Byju’s Board members resigned after shareholding fell below minimum threshold

Soon after representatives from Peak XV Partners , Prosus and the Chan Zuckerberg Initiative confirmed their departures from Byju’s board, the edtech firm issued a statement saying it has been in ‘constructive discussions’ with investors on board reconstitution, including the induction of independent directors.

“The need for reconstruction arose because certain shareholders had to vacate their positions on the board due to their shareholding dropping below the minimum required thresholds, as per our shareholders’ agreement,” the company explained. In their shareholders’ agreement.

A day after initially denying ETtech’s report on the board resignations they said “We desire to assure all stakeholders that we are making every effort on constituting an inclusive and world-class board that is commensurate with the company’s size and scale,”.

Byju’s board withdrawals come at a time when the company is dealing with a number of challenges, including legal cases with financiers, loan defaults, and the much-delayed release of its Financial statements pertaining to the fiscal year that concluded on March 31, 2022.