LinkedIn India, Satya Nadella Fined ₹27 Lakh for Significant Beneficial Owner Violations

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 On Wednesday, the Corporate Affairs Ministry of India imposed a significant fine on Microsoft-owned LinkedIn India, including Satya Nadella and eight other individuals, for violating significant beneficial owner (SBO) norms under the Companies Act.

In a detailed 63-page order, officials noted that LinkedIn India and nine others breached the SBO norms stipulated by the Companies Act of 2013. The order specifically mentioned, “Satya Nadella and Ryan Roslansky are the SBOs in relation to the subject company and are liable to a penalty under section 90(10) of the Act, due to their failure to report as per section 90(1).” Ryan Roslansky was appointed as the global CEO of LinkedIn Corporation on June 1, 2020, and began reporting to Satya Nadella.



The order outlined the liabilities of LinkedIn officers for not taking necessary steps to identify the SBOs. Consequently, the Registrar of Companies (RoC) fined LinkedIn Technology Information Pvt Ltd a total of ₹27,10,800. This fine encompasses penalties on Satya Nadella, CEO Ryan Roslansky, and seven others: Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi, and Henry Chining Fong.

Additionally, a separate penalty of ₹7 lakh was imposed for violating the SBO norms. The notice stated, “The company and its officers failed to even send a notice [which was mandatorily required to be sent] as per rule 2A (2) of the Companies (Significant Beneficial Owners) Rules, 2018, leading to a contravention of section 90(5) for which penalty has been provided under section 450. All the officers, including the non-executive directors, are liable for this violation due to the presumption of clear knowledge on part of each of such directors about the holding structure of the company.”

More About LinkedIn and Satya Nadella:

LinkedIn India operates as a subsidiary of the Microsoft Group, managed by Satya Nadellasubsidiary of the Microsoft Group, managed by Satya Nadella, who is the Chief Executive Officer of Microsoft. Microsoft has been managing LinkedIn since its acquisition in 2016.

The team led by Nadella has the option to file an appeal against the order with the Regional Director (NR) within 60 days from the date of receipt of the order.

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