Satya Nadella along with others were fined with hefty amount for breaching Beneficial Owner Norms

LinkedIn India, along with Microsoft CEO Satya Nadella and eight others, has been hit with substantial penalties by the Corporate Affairs Ministry. These penalties were imposed for a serious breach of significant beneficial owner norms under the company’s law. The Registrar of Companies (RoC) has not held back, imposing a total of ₹27,10,800 in fines on LinkedIn India, Nadella, LinkedIn CEO Ryan Roslansky, and the other seven individuals. LinkedIn India incurred a penalty of ₹7 lakh, while Nadella and Roslansky each received fines of ₹2 lakh. Those fined were Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi, and Henry Chining Fong.

In a comprehensive 63-page order, the RoC (NCT of Delhi & Haryana) has underscored the violations of Significant Beneficial Owner (SBO) norms under the Companies Act 2013. It has been noted that LinkedIn India and the individuals in question failed to identify the SBO about the company, a serious breach that has made Nadella and Roslansky liable for penalties under section 90(10) of the Act. Section 90 of the Act mandates companies to disclose SBO details. The RoC also emphasized the failure of the company and its officers to send a mandatory notice as per rule 2A (2) of the Companies (Significant Beneficial Owners) Rules, 2018, leading to a contravention of section 90(5).

Satya Nadella, the chief of Microsoft, who acquired LinkedIn in December 2016, is not just a distant figure in this matter. He is directly associated with the subsidiary LinkedIn India, making his role and responsibility in this issue significant. An appeal against the order can be filed with the Regional Director (NR) within 60 days of receipt of the order.

[Image Source: LinkedIn]