MCA penalises Samsung Display Noida for breach of Companies Act norms
MCA) has slapped penalties totalling Rs 8,14,200 on Samsung Display Noida Private Ltd, its managing director Seung Kyu Lee and three others for alleged violation of the significant beneficial owner (SBO) norms under the Companies Act, 2013.
In its order dated June 12, reviewed by ET, the Registrar of Companies (RoC) for Uttar Pradesh under the MCA has said the company «has failed to exercise the due diligence to ascertain the SBO in terms of the provisions of the section 90 of the Act».
As per Samsung Display Noida's February 2024 letter cited in the order, it's fully owned by Samsung Display Co (Korea), which, in turn, is 84.8% owned by Samsung Electronics Co (Korea). Section 90 of the Companies Act, 2013, typically requires companies to disclose their significant beneficial owner details to authorities.
The latest order comes weeks after the RoCfor the National Capital Region and Haryanaslapped penalties in excess of Rs27 lakh on Microsoft-owned professional networking platform LinkedIn India, Microsoft chairman Satya Nadella, Linkedin chief executive Ryan Roslansky and seven others for violation of such norms.
The orders underscore the ministry's growing unease over inadequate revelation of significant beneficial owner details by companies, especially the local arms of foreign firms. A penalty of Rs5 lakh has been imposed on Samsung Display Noida and that of Rs1 lakh has been slapped on Lee, according to the order.
Three others of the company have to cough up total penalties of Rs2,14,200. Samsung Display
