MCA fines Nadella, LinkedIn India, 8 others for violating SBO norms

The Ministry of Corporate Affairs (MCA) fined Microsoft Chief Satya Nadella and eight other executives Rs 27,10,800 for violating significant beneficial ownership (SBO) norms related to LinkedIn Technology Information, according to an order by the Registrar of Companies (RoC) — Delhi and Haryana. Company law experts have noted that the company has the option to appeal against the RoC order at the office of the regional director, MCA, or high court.Section 90 of the Companies Act addresses the identification of individuals who hold beneficial interest in a company, requiring companies to disclose SBO details.In its 63-page order, the RoC stated that the company and its officers failed to send a notice, as mandatorily required by Rule 2A(2) of the Companies (Significant Beneficial Owners) Rules. “LinkedIn itself disclosed on its website that Ryan Roslansky reports to Nadella and is part of Microsoft’s senior leadership team… Nadella is also a significant beneficial owner of the subject company under Section 90.”