Delhi High Court Halts MCA Penalties on Microsoft and LinkedIn Executives
HC stays MCA penalty on Nadella, others in SBO disclosure case
The Economic Times
Image: The Economic Times
The Delhi High Court has temporarily suspended penalties imposed by the Ministry of Corporate Affairs on Microsoft CEO Satya Nadella and LinkedIn executives for failing to disclose significant beneficial ownership in LinkedIn Technology Information, an Indian company. The court's decision comes ahead of a hearing scheduled for October 6.
- 01The penalties were imposed for not disclosing significant beneficial ownership as required by Indian corporate law.
- 02Justice Anish Dayal is overseeing the case and has requested a response from the Ministry of Corporate Affairs.
- 03The Registrar of Companies issued a 63-page order detailing the alleged violations.
- 04The case involves both current and former directors of LinkedIn India.
- 05The next hearing is set for October 6.
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The Delhi High Court has issued a stay on the penalties imposed by the Ministry of Corporate Affairs (MCA) against Microsoft CEO Satya Nadella, LinkedIn CEO Ryan Roslansky, and several directors for failing to disclose their significant beneficial ownership in LinkedIn Technology Information, an Indian entity. Justice Anish Dayal stated that the court finds it appropriate to stay the penalties until the next hearing on October 6. The MCA's penalties were based on allegations that Microsoft and LinkedIn did not comply with the Companies (Significant Beneficial Owners) Rules, which require companies to notify the Registrar of Companies about their beneficial ownership status. The Registrar's detailed order spans 63 pages.
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The stay on penalties may influence corporate governance practices among foreign companies operating in India.
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