One of the three non-promoter directors on Byju’s board who left in June hasn’t previously discussed his or her reasons for doing so.
Following the resignations of three of BYJU’S board members from Peak XV Partners, formerly known as Sequoia Capital India, Prosus, and Chan Zuckerberg Initiative last month, problems began to develop for the firm.
Prosus, a well-known investor in BYJU, has now publicly revealed the reason behind Russell Dreisenstock’s resignation. In accordance with a statement made public by the business, BYJU’S has experienced significant growth since 2018. Its reporting and governance processes, however, did not develop sufficiently to sustain the organization at that scale.
The statement stated that “despite numerous attempts from our Director, executive leadership at BYJU’S routinely disregarded advice and recommendations relating to strategic, operational, legal, and corporate governance matters. The statement added, “The decision for our Director to resign from the BYJU’S Board was decided when it became evident that he was unable to discharge his fiduciary obligation to serve the long-term interests of the Company and its stakeholders.
In addition, Prosus‘ statement noted that BYJU’S provides services in a crucial manner to a highly vital industry. And therefore, in its capacity as a shareholder, it will keep collaborating with other parties involved in the firm to defend its long-term interests.
“BYJU’S is located at the nexus of two crucial and critical investment sectors for Prosus: India and Education. We still believe in BYJU’S and its potential to revolutionize access to high-quality education in India and around the world, despite the fact that we no longer have a presence on the Company’s Board of Directors. Prosus will continue to exercise its rights as a shareholder, working with other shareholders and public authorities to protect the long-term interests of the Company and its stakeholders, the statement said.
About 9% of the global leader in education technology is held by Prosus. It’s interesting to note that the resignation of the board members occurred just days after that of Deloitte, BYJU’s auditor.
