The Indian corporate affairs ministry has imposed fines on LinkedIn India, the professional networking platform owned by Microsoft, and its CEO Satya Nadella, along with eight other individuals, for violating significant beneficial ownership (SBO) norms under the Companies Act, 2013.
The Registrar of Companies (RoC), in a 63-page order, stated that LinkedIn India and the individuals failed to comply with the SBO disclosure requirements stipulated in Section 90 of the Act. This section mandates companies to identify and disclose details of their significant beneficial owners, those who ultimately control or have a substantial interest in the company.
The RoC specifically found that Satya Nadella, Microsoft’s CEO, and Ryan Roslansky, the global CEO of LinkedIn, were considered SBOs of LinkedIn India. The order highlights that both executives failed to report their ownership as required under Section 90(1) of the Act.
The penalty levied on LinkedIn India amounts to Rs 7 lakh, while Nadella and Roslansky were each fined ₹2 lakh. Additional fines were also imposed on seven other individuals associated with the company, including Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi, and Henry Chining Fong.
The RoC order cited the company’s failure to notify the SBOs as per the Companies (Significant Beneficial Owners) Rules, 2018, resulting in a further violation under Section 90(5) of the Act.
LinkedIn India was established as a subsidiary of the Microsoft Group after the tech giant acquired the platform in December 2016.
The order provides for an appeal to the Regional Director (NR) within 60 days from the date of receipt.
Source: Business Today
