Corporate Affairs Ministry Imposes Fines on LinkedIn India and Nadella


Corporate Affairs Ministry Imposes Fines on LinkedIn India and Nadella



Corporate Affairs Ministry Imposes Fines on LinkedIn India and Nadella



Introduction: Overview of the Penalties:

The Ministry of Corporate Affairs has recently imposed fines on LinkedIn India, Satya Nadella, and eight other individuals for not adhering to the Significant Beneficial Owner (SBO) norms outlined in the Companies Act, 2013.


Key Figures and Violations:

Satya Nadella, CEO of Microsoft, and Ryan Roslansky, CEO of LinkedIn, were identified as significant beneficial owners of LinkedIn India. The failure to report their statuses as SBOs has resulted in penalties. The Registrar of Companies (RoC) noted this violation in a 63-page order.


Details of the Order:

The order specifies that LinkedIn India, along with the involved individuals, did not take the necessary steps to identify and report the SBOs. This oversight violates Section 90 of the Companies Act, which mandates the disclosure of SBO details.


Breakdown of Penalties:

LinkedIn India was fined Rs 7 lakh, while Nadella and Roslansky each faced a Rs 2 lakh fine. Additional fines were levied on seven other individuals associated with LinkedIn India, bringing the total penalties to Rs 27,10,800.


Additional Violations and Fines:

The RoC highlighted that LinkedIn India and its officers also failed to send mandatory notices as required by the Companies (Significant Beneficial Owners) Rules, 2018. This led to further contraventions and additional penalties under Section 450.


Affected Individuals:

The other individuals fined include Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi, and Henry Chining Fong. These fines were imposed due to presumed knowledge about the company's holding structure.


Appeals Process:

LinkedIn India, as a subsidiary of Microsoft, has the option to appeal the decision within 60 days from the receipt of the order, directing the appeal to the Regional Director (NR).


Conclusion:

The fines imposed by the Ministry of Corporate Affairs highlight the importance of compliance with SBO norms under the Companies Act. The penalties serve as a reminder for corporations to ensure proper reporting and adherence to regulatory requirements to avoid significant fines and legal issues.






Content Image Source Courtesy:

https://www.newindianexpress.com/
gadget360,https://people.com



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