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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

During an inspector's investigation into Orion Pharma Ltd, the inspector wants to examine the affairs of Vikram Nair, who was an employee of Orion Pharma at the relevant time but never a director or manager. Which statement is correct?

Yes. The related-company provision extends to any person who is or was at the relevant time the company's managing director, manager or employee. The inspector needs prior Central Government approval and must consider the results relevant to the investigation of the company.

  1. AAn employee of the company can be investigated with prior Central Government approval, if relevant to the investigationCorrect
  2. BOnly a managing director or manager can be investigated, not an employee
  3. CAn employee can be investigated without any approval
  4. DAn employee can be investigated only by the Serious Fraud Investigation Office

Explanation

Section 219(d) covers any person who is or was at the relevant time the company's managing director, manager or employee. Prior Central Government approval is required. The option limiting it to managing directors or managers ignores the word employee.

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