Reviewing ministry of corporate affairs' penalty order on company, Satya Nadella, says LinkedIn

economictimes.indiatimes.com:

LinkedIn said it's reviewing the order of the ministry of corporate affairs (MCA) to determine its next move after the ministry slapped penalties totalling ₹27.1 lakh on the Microsoft-owned professional networking platform and top executives, citing violation of the significant beneficial owner (SBO) norms under the Companies Act, 2013. In an email reply to ET, a LinkedIn spokesperson said: «We comply with the laws of the countries we operate in.

We are reviewing the order to determine next steps». The penalties have been imposed on LinkedIn India, Microsoft chairman and chief executive Satya Nadella, LinkedIn chief executive Ryan Roslansky and seven others.

Microsoft acquired LinkedIn in December 2016.

RoC ruling
In an order on Wednesday, the Registrar of Companies (RoC) for the national capital region of Delhi and Haryana under the MCA said the company and the officials are liable for penal action for their «failure to take necessary steps as per Section 90-4A (of the Companies Act) to identify the SBO in relation to the company». The RoC said while the company had reported that LinkedIn Technology Unlimited Company is a registered owner and LinkedIn Ireland Unlimited Company is a beneficial owner with one share from January 11, 2024, its financial statements suggest the beneficial interest was created much earlier.

«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),» said the order reviewed by ET. «Ryan Roslansky was appointed as the global CEO of LinkedIn Corporation on June 1, 2020 and started reporting to Satya Nadella,» added the order by RoC Pranay Chaturvedi.