LinkedIn India, Satya Nadella Fined ₹27 Lakh for Significant Beneficial Owner Violations
On Wednesday the Corporate Affairs Ministry of India fined Microsoft-owned LinkedIn India. The fine is on Satya Nadella and eight other individuals for violating significant beneficial owner norms under the Companies Act.
In the 63-page order, officials said LinkedIn India and nine others have violated beneficial owner (SBO) norms under the Companies Act of 2013.
In the statement of the order, it is mentioned that “…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). Ryan Roslansky was appointed as the global CEO of LinkedIn Corporation on 1st June 2020 and started reporting to Satya Nadella.”
According to the order, the LinkedIn officers are liable for action for failure to take necessary steps to identify SBOs.
The RoC has fined a total of Rs. 27,10,800 on LinkedIn Technology Information Pvt Ltd. This fine is on Satya Nadella, CEO Ryan Roslansky and 7 others who are Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi and Henry Chining Fong.
Apart from this for violation of the SBO norms, a penalty is of ₹ 7 lakh.
According to the notice, “Also, the company and its officers failed to even send a notice [which was mandatorily required to be sent] as per rule 2A (2) of the Companies (Significant Beneficial Owners) Rules, 2018 leading to a contravention of section 90(5) for which penalty has been provided under section 450. All the officers, including the non-executive directors are liable for this violation due to the presumption of clear knowledge on part of each of such directors about the holding structure of the company”
More about LinkedIn and Satya Nadella:
LinkedIn India is a subsidiary of Microsoft Group. Satya Nadella is the chief of Microsoft. After 2016 they are managing LinkedIn.
Though team of Nadella can file an appeal against the order with the Regional Director (NR) within 60 days from the date of receipt of this order.
