The Aryavarth Express
Agency (New Delhi): On Wednesday, the Corporate Affairs Ministry imposed fines on LinkedIn India, Microsoft CEO Satya Nadella, and eight other individuals for violating Significant Beneficial Owner (SBO) norms under the Companies Act, 2013. Nadella leads Microsoft, which acquired LinkedIn in December 2016.
The Registrar of Companies (NCT of Delhi & Haryana) issued a 63-page order stating that LinkedIn India and the individuals failed to comply with SBO norms. According to the order, Nadella and Ryan Roslansky, LinkedIn’s global CEO, did not report their status as SBOs, violating section 90(1) of the Act.
Section 90 of the Companies Act mandates companies to disclose SBO details. The company and its officers failed to identify and report the SBO, leading to penalties under section 90(10). The Registrar of Companies fined LinkedIn Technology Information Pvt Ltd (LinkedIn India), Nadella, Roslansky, and seven other individuals a total of Rs 27,10,800.
LinkedIn India faces a Rs 7 lakh penalty, while Nadella and Roslansky are each fined Rs 2 lakh. The other individuals fined 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 did not send the required notice as per rule 2A (2) of the Companies (Significant Beneficial Owners) Rules, 2018, violating section 90(5). All officers, including non-executive directors, are liable for this breach.
LinkedIn India operates as a subsidiary of Microsoft Group. An appeal against the order can be filed with the Regional Director (NR) within 60 days of receiving the order.