CORPORATE AFFAIRS MINISTRY FINES SATYA NADELLA, LINKEDIN INDIA AND OTHERS ₹27 LAKH

The Corporate Affairs Ministry has imposed fines to the tune of ₹27 lakh on LinkedIn India, its parent company Microsoft, and several key individuals, including CEO Satya Nadella and Ryan Roslansky, for violating the Significant Beneficial Owner (SBO) norms under the Companies Act, 2013. The penalties were detailed in a 63-page order issued by the Registrar of Companies (RoC) for the National Capital Territory of Delhi and Haryana.

The RoC's order highlighted that LinkedIn India and the involved individuals failed to comply with SBO reporting requirements, which mandate the disclosure of beneficial ownership details. Specifically, Satya Nadella, Chairman and CEO of Microsoft, and Ryan Roslansky, CEO of LinkedIn Corporation, were cited for not reporting their status as significant beneficial owners, as required under section 90(1) of the Act.

According to the RoC, the penalties include a total of Rs 27,10,800 imposed on LinkedIn Technology Information Pvt Ltd (LinkedIn India), Nadella, Roslansky, and seven other individuals. LinkedIn India faces a penalty of ₹7 lakh, while Nadella and Roslansky each face fines of ₹2 lakh. The other fined individuals are Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi, and Henry Chining Fong.

The order also noted that LinkedIn India and its officers failed to send mandatory notices as required by the Companies (Significant Beneficial Owners) Rules, 2018. This omission led to further violations under section 90(5) of the Act, for which penalties are provided under section 450.

LinkedIn India operates as a subsidiary of Microsoft Group. The company and the fined individuals have the option to appeal the order with the Regional Director (Northern Region) within 60 days from the date of receipt of the order.

2024-05-22T15:54:55Z dg43tfdfdgfd