The Ministry of Corporate Affairs has imposed fines totalling INR2.7 million (USD32,300) on Microsoft-owned LinkedIn India, Microsoft CEO Satya Nadella and eight other individuals for failing to comply with the Significant Beneficial Owner (SBO) norms under the Companies Act, 2013.
According to the ministry announcement, LinkedIn India and its officers did not take the necessary steps to identify the SBOs of the company. The violation of SBO norms contravenes requirements set out in section 90(1) of the act, resulting in penalties under section 90(10) by the Registrar of Companies.
Nadella, the head of Microsoft, which acquired LinkedIn in December 2016, and Ryan Roslansky, LinkedIn’s global CEO since June 2020, were identified as the SBOs. They, along with LinkedIn India, were found liable for these violations.
A penalty of INR700,000 was imposed on LinkedIn India for SBO norms violations. Nadella and Roslansky faced fines of INR200,000 each. Others penalised include Microsoft and LinkedIn executives Michelle Katty Leung, Lisa Emiko Sato, Keith Ranger Dolliver, Benjamin Owen Orndorff, Ashutosh Gupta, Henry Chining Fong, and Mark Leonard Nadres Legaspi.
