BENGALURU: Microsoft-owned professional networking platform LinkedIn India, which was fined by the ministry of corporate affairs, on Thursday said it is reviewing the order to determine next steps.
“We comply with the laws of the countries we operate in. We are reviewing the order to determine next steps,” LinkedIn told TNIE. On Wednesday, the ministry of corporate affairs imposed penalties on LinkedIn India, Satya Nadella and eight other individuals. This fine was for violating major beneficial ownership (SBO) norms under Companies Act, 2013. It has imposed Rs 7 lakh penalty on LinkedIn India and a fine of Rs 2 lakh each have been imposed on Nadella and LinkedIn CEO Ryan Roslansky, respectively.
In a order, the Registrar of Companies (RoC) said, “LinkedIn Technology Unlimited Company and the beneficial owner, i.e. LinkedIn Ireland Unlimited Company have not given declarations as required under sub-section (1) or sub-section (2) of section 89 and are liable for penalty as provided under S-89(5) of the Act.” In total, Rs 27,10,800 have been imposed on LinkedIn India, Nadella, Roslansky, and 7 others.
As per SBO rules, every individual who is a major beneficial owner in a company should file a declaration. Vishwas Panjiar, Partner, Nangia Andersen LLP, said, “The RoC has taken a rather harsh stand in dealing with the purported non-compliance by LinkedIn India as it not only rejected LinkedIn India’s request of withdrawal of the impugned form and also relied on publicly available information to conclude.”