Corporate Affairs Ministry Fines LinkedIn India, Nadella, and Others for Companies Law Violations

The corporate affairs ministry has imposed fines on Microsoft-owned LinkedIn India, including its CEO Satya Nadella and eight other individuals, for violating significant beneficial owner norms under the Companies Act. In a 63-page order, the Registrar of Companies (NCT of Delhi & Haryana) cited violations of the Companies Act, 2013.

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. 

According to the order, Satya Nadella and Ryan Roslansky, the global CEO of LinkedIn Corporation, are considered significant beneficial owners and are liable for penalties under Section 90(10) of the Act. The penalties amount to a total of Rs 27,10,800, with fines ranging from Rs 2 lakh to Rs 7 lakh imposed on LinkedIn India, Nadella, Roslansky, and other individuals involved.

The violations pertain to the failure to disclose significant beneficial owner details as required under Section 90 of the Act. The RoC highlighted the company's failure to identify and report SBOs, resulting in penalties for LinkedIn India and its officers.

The order also noted the failure to send mandatory notices under the Companies (Significant Beneficial Owners) Rules, 2018, leading to contraventions of Section 90(5) and Section 450 of the Act. LinkedIn India operates as a subsidiary of the Microsoft Group.

Affected parties have the option to appeal against the order within 60 days from the date of receipt. This development underscores the importance of compliance with corporate governance norms and regulatory requirements in the corporate sector.