Why has Microsoft's Satya Nadella been fined by the Indian government? HT explains

LinkedIn, its CEO Satya Nadella and eight other individuals were fined for violating beneficial ownership (SBO) norms. Here's what it means

Published on: May 23, 2024, 11:51:02 IST

By HT News Desk | Edited by Mallika Soni

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Satya Nadella faced fines imposed by the Indian corporate affairs ministry as LinkedIn India, the professional networking platform owned by Microsoft, failed to comply with the SBO disclosure requirements stipulated in Section 90 of the Act. This means that LinkedIn, its CEO Satya Nadella and eight other individuals were fined for violating beneficial ownership (SBO) norms under the Companies Act, 2013 as per the Registrar of Companies (RoC)'s 63-page order.

Microsoft CEO Satya Nadella speaks during the Microsoft Build conference at Seattle Convention Center Summit Building in Seattle, Washington. (AFP)

What rules did Satya Nadella and LinkedIn not follow?

As per the section, companies are mandated to identify and disclose details of their significant beneficial owners who control or have a substantial interest in the company. The RoC found that Satya Nadella and Ryan Roslansky, the global CEO of LinkedIn, were considered SBOs of LinkedIn India but failed to report their ownership as required under Section 90(1) of the Act.

How much fine has been imposed on Satya Nadella and others as per the order?

LinkedIn India's penalty as per the order amounts to ₹7 lakh, while Satya Nadella and Roslansky were each fined ₹2 lakh. Fines were also imposed on Keith Ranger Dolliver, Benjamin Owen Orndorff, Michelle Katty Leung, Lisa Emiko Sato, Ashutosh Gupta, Mark Leonard Nadres Legaspi and Henry Chining Fong.

What LinkedIn said on the order?

Read more: Elon Musk on Satya Nadella's Microsoft Recall comment: 'Turning this feature...'

LinkedIn said in a statement, “We comply with the laws of the countries we operate in. We are reviewing the order to determine next steps.” The company was established as a subsidiary of Microsoft after the tech giant acquired the platform in December 2016.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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