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Informist, Thursday, May 21, 2026

 

NEW DELHI – The Delhi High Court has stayed the fines imposed by the Ministry of Corporate Affairs on Microsoft Corp. Chief Executive Officer Satya Nadella, LinkedIn Corp.'s head, and others for failing to disclose significant beneficial ownership in LinkedIn Technology Information Pvt. Ltd., an Indian company. "Having appreciated the submissions advanced on behalf of petitioners, and there being no instructions on behalf of the respondents, this court deems it fit to stay the operation of impugned orders till the next date of hearing," the court said.

 

The court issued a notice to the ministry on the challenge by Nadella and others. It will hear the case next on Oct. 6.

 

The registrar of companies, under the ministry, said Microsoft, LinkedIn, and its officials had failed to send it a notice as mandated by the Companies (Significant Beneficial Owners) Rules. "LinkedIn itself disclosed on its website that Ryan Roslansky (former chief executive officer) reports to Nadella and is part of Microsoft's senior leadership team. Nadella is also a significant beneficial owner of the subject company (LinkedIn Technology) under Section 90," the registrar said.

 

The companies' chief executive officers argued that they cannot be considered significant beneficial owners of LinkedIn Technology as they fulfil their duties as professionals serving at the pleasure of their respective boards and shareholders. "If their employment is terminated by the relevant employers, they will not be able to discharge their existing duties over the relevant companies, which would clearly indicate the lack of authority of such persons over LinkedIn Technology, a cornerstone in determining SBO (significant beneficial ownership)," they said. The registrar roped in all the petitioners in the order imposing a penalty despite there being no occasion for them to make a declaration under Section 89 and Section 90 of the Companies Act, 2013, they said.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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