Govt fines LinkedIn, Satya Nadella for violating companies law
New Delhi, May 22
The Corporate Affairs Ministry on Wednesday slapped fines on Microsoft-owned LinkedIn India, Satya Nadella and eight other individuals for violation of the significant beneficial owner (SBO) norms under the companies law. Nadella is the chief of Microsoft, which acquired the professional networking platform LinkedIn in December 2016.
Failed to take step to identify sbos
- Microsoft-owned LinkedIn India, Satya Nadella, and eight other individuals face penalties totaling Rs 27.10L for violating the significant beneficial owner (SBO) norms under the Companies Act
- The Registrar of Companies has stated that LinkedIn India and the individuals failed to take necessary steps to identify the SBO in relation to the company
In a 63-page order, the Registrar of Companies ((NCT of Delhi & Haryana) said LinkedIn India and the individuals violated the SBO norms under the Companies Act, 2013.
“…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 said in the order.
Section 90 of the Act pertains to SBO. It requires companies to disclose SBO details. 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.
The RoC has slapped penalties totalling Rs 27,10,800 on LinkedIn Technology Information Pvt Ltd or LinkedIn India, Nadella, LinkedIn CEO Ryan Roslansky and seven other individuals.
