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Business News/ Companies / News/  Microsoft CEO Satya Nadella, LinkedIn India, and 8 others fined 27 lakh by govt; here's why

Microsoft CEO Satya Nadella, LinkedIn India, and 8 others fined ₹27 lakh by govt; here's why

For Significant Beneficial Owner norm violations, a penalty of ₹7 lakh has been slapped on LinkedIn India.

A penalty of ₹7 lakh has been slapped on LinkedIn India. (Representational Image) (REUTERS)Premium
A penalty of 7 lakh has been slapped on LinkedIn India. (Representational Image) (REUTERS)

Microsoft-owned LinkedIn India, Microsoft CEO Satya Nadella, and eight others were slapped fines by the Corporate Affairs Ministry on Wednesday for violating the significant beneficial owner norms under the companies law, reported PTI.

The report said the Registrar of Companies (RoC) has slapped penalties totalling 27,10,800 on LinkedIn Technology Information Pvt Ltd or LinkedIn India, Nadella, LinkedIn CEO Ryan Roslansky and seven other individuals.

A penalty of 7 lakh has been slapped on LinkedIn India, and fines of 2 lakh each have been imposed on Satya Nadella, the chief of Microsoft, and LinkedIn CEO Ryan Roslansky.

Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi and Henry Chining Fong are among those who have been fined.

In a 63-page order, the Registrar of Companies ((NCT of Delhi & Haryana) said that LinkedIn India and the individuals violated the Significant Beneficial Owner (SBO) norms under the Companies Act, 2013.

According to the order, the company and its officers are liable for action for the failure to take necessary steps to identify the 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). Ryan Roslansky was appointed as the global CEO of LinkedIn Corporation on 1st June 2020 and started reporting to Satya Nadella," the RoC, which comes under the ministry, stated in its order, according to the PTI report.

Section 90 of the Act pertains to SBO. It requires companies to disclose SBO details.

"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," it said.

Satya Nadella is the chief of Microsoft, which acquired the professional networking platform LinkedIn in December 2016. LinkedIn India has been set up as a subsidiary of Microsoft Group.

An appeal can be filed against the order with the Regional Director (NR) within 60 days from the date of receipt of this order.

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Published: 22 May 2024, 08:36 PM IST
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