Corporate Regulator Slaps Penalty on LinkedIn India and Top Brass for Failing to Disclose Ownership Details
In a significant development, the Registrar of Companies of Delhi has imposed monetary penalties on professional networking platform LinkedIn India and its top leadership including CEOs of parent Microsoft and LinkedIn for failing to comply with certain ownership disclosure norms under the Companies Act.
According to the 63-page order passed, LinkedIn India, its CEO Ryan Roslansky and Microsoft CEO Satya Nadella have been fined for not reporting details of Significant Beneficial Owners or SBO as mandated by the law. As per the order, both Nadella and Roslansky, who reports to the former, are considered SBO for LinkedIn India but their details were not filed as required.
A total penalty of over 27 lakh rupees has been imposed on LinkedIn India, Nadella, Roslansky and seven other individuals linked to the company for violations. LinkedIn India itself has been fined 7 lakh rupees while Nadella and Roslansky have been penalized 2 lakh rupees each.
The order noted that as SBOs, it was the responsibility of Nadella and Roslansky to report their details but they failed to do so. It also said the company and its officers did not even send the mandatory notice about SBO information as prescribed, thus violating other sections of the law as well.
LinkedIn India is a subsidiary of Microsoft Group which had acquired the professional networking platform in 2016. As per the law, companies are required to disclose identities of individuals who ultimately own or control them. The order can be appealed within 60 days.
