The fines, imposed on the Microsoft-owned professional networking platform and its top executives, are due to violations of the significant beneficial owner (SBO) norms
Section 90 of the Companies Act requires companies to disclose their significant beneficial owner (SBO) details to the relevant authorities
All the officers, including the non-executive directors, are liable for this violation due to the presumption of clear knowledge, the order said
LinkedIn is currently reviewing an order from the Ministry of Corporate Affairs (MCA) after its Indian arm and top executives were fined for violating significant beneficial ownership (SBO) norms under the Companies Act, 2013.
“We comply with the laws of the countries we operate in. We are reviewing the order to determine next steps,” a LinkedIn spokesperson said.
In an order published on Wednesday, the Registrar of Companies (RoC) fined LinkedIn Technology Information Pvt Ltd (the Indian arm), LinkedIn Technology Unlimited Co (one of its registered shareholders), LinkedIn Ireland Unlimited Co (the beneficial owner), Microsoft chairman and chief executive Satya Nadella, and LinkedIn Corp chief executive Ryan Roslansky. Microsoft acquired LinkedIn for $26.2 Bn in 2016.
The order stated that the company and the officials are liable for penal action for their “failure to take necessary steps as per Section 90-4A of the Companies Act to identify the significant beneficial owner (SBO) in relation to the company.”
“Satya Nadella and Ryan Roslansky are the SBOs in relation to the subject company and are liable to a penalty under Section 90(10) of the Act, due to their failure to report as per Section 90(1),” the order said.
Section 90 of the Companies Act requires companies to disclose their significant beneficial owner (SBO) details to the relevant authorities.
“All the officers, including the non-executive directors, are liable for this violation due to the presumption of clear knowledge on the part of each of such directors about the holding structure of the company,” the order added.
It further mentioned that a penalty of INR 7 lakh has been imposed on LinkedIn India, with INR 2 lakh each being slapped on Nadella and LinkedIn CEO Ryan Roslansky.
Other individuals who have been fined include Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi and Henry Chining Fong.
LinkedIn India, a subsidiary of the Microsoft Group, claims to have about 120 Mn members in India and aims to leverage AI to impact more than half of the jobs in the country.
This development comes as Ashutosh Gupta, the India country manager and APAC head of online sales for LinkedIn Marketing Solutions, decided to leave the company at the end of April after an 11-year tenure.
