Byju's Legal Battle Intensifies Over Aakash EGM Rights Issue
Byju's is challenging a National Company Law Tribunal order that allows Aakash Educational Services to hold an EGM for a rights issue. Byju's argues that this move could significantly reduce its stake in Aakash from 25% to less than 5%. Byju's is currently under insolvency proceedings.
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In an escalating legal tussle, educational technology giant Byju's has approached the National Company Law Appellate Tribunal to challenge a recent order by the National Company Law Tribunal. The previous decree permitted Aakash Educational Services to conduct an extraordinary general meeting (EGM) concerning a contentious rights issue.
Byju's, currently navigating corporate insolvency resolution, contends that the rights issue threatens to dramatically dilute its stake in Aakash from 25% to a mere 5%. The edtech firm asserts that the planned EGM disregards its veto rights and the articles of association, contravening an earlier court order.
The Chennai bench of the Appellate Tribunal, including Justices N Seshasayee and Jatindranath Swain, has reserved judgment on the matter after hearing from involved parties, including Byju's U.S.-based lender GLAS Trust Company LLC. Proceedings highlighted Aakash's urgent financial needs to sustain services for its vast student and employee population.
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