Government imposed heavy fine on LinkedIn, Satya Nadella, it is a case of violation of these rules
The Corporate Affairs Ministry fined Microsoft’s LinkedIn India, Satya Nadella and others for violating key beneficial ownership rules under the Companies Act. ROC (Registrar of Companies) has imposed a total fine of Rs 27,10,800 on LinkedIn Technology Information Pvt Ltd or LinkedIn India, Nadella, LinkedIn CEO Ryan Roslansky and seven other persons.
Nadella is the head of Microsoft. They acquired professional networking platform LinkedIn in December 2016. The Registrar of Companies (National Capital Territory of Delhi and Haryana), under the Ministry of Corporate Affairs, said in a 63-page order that LinkedIn India and the individuals have violated Substantive Beneficial Ownership (SBO) rules under the Companies Act, 2013. The Registrar of Companies, in its order, said that Satya Nadella and Ryan Roslansky are SBOs in respect of the company.
Why was this action taken
They are liable to penalty under Section 90(10) of the Act due to their failure to report under Section 90(1). Roslansky was appointed as the global CEO of LinkedIn Corporation on June 1, 2020. He reports to Satya Nadella. Section 90 of the Act deals with SBOs. This requires companies to disclose SBO details. According to the order, action is taken against the company and its officers for failing to take necessary steps to identify significant beneficial ownership in respect of the company.
Who was fined how much?
LinkedIn India has been fined Rs 7 lakh for violating significant beneficial ownership rules. Nadella and Roslansky have been fined Rs 2 lakh each respectively. The other individuals fined in the order are Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katie Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi and Henry Chinning Fong. LinkedIn India has been established as a subsidiary of Microsoft Group. An appeal against the order can be filed with the Regional Director (NR) within 60 days from the date of receipt of this order.
