May 23, 2024 11:51 AM IST
LinkedIn, its CEO Satya Nadella and eight other individuals were fined for violating beneficial ownership (SBO) norms. Here’s what it means
Satya Nadella faced fines imposed by the Indian corporate affairs ministry as LinkedIn India, the professional networking platform owned by Microsoft, failed to comply with the SBO disclosure requirements stipulated in Section 90 of the Act. This means that LinkedIn, its CEO Satya Nadella and eight other individuals were fined for violating beneficial ownership (SBO) norms under the Companies Act, 2013 as per the Registrar of Companies (RoC)’s 63-page order.
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What rules did Satya Nadella and LinkedIn not follow?
As per the section, companies are mandated to identify and disclose details of their significant beneficial owners who control or have a substantial interest in the company. The RoC found that Satya Nadella and Ryan Roslansky, the global CEO of LinkedIn, were considered SBOs of LinkedIn India but failed to report their ownership as required under Section 90(1) of the Act.
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How much fine has been imposed on Satya Nadella and others as per the order?
LinkedIn India’s penalty as per the order amounts to ₹7 lakh, while Satya Nadella and Roslansky were each fined ₹2 lakh. Fines were also imposed on Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi and Henry Chining Fong.
What LinkedIn said on the order?
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LinkedIn said in a statement, “We comply with the laws of the countries we operate in. We are reviewing the order to determine next steps.” The company was established as a subsidiary of Microsoft after the tech giant acquired the platform in December 2016.
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