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CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation

Under the Companies Act, 2013, how do the provisions of the Chapter on inspection, inquiry and investigation apply to foreign companies?

The provisions on inspection, inquiry and investigation apply mutatis mutandis to foreign companies. The law makes the Chapter's machinery available for foreign companies with necessary changes and imposes no extra condition, such as an Indian subsidiary or an RBI direction.

  1. AThey do not apply to foreign companies at all
  2. BThey apply mutatis mutandis to inspection, inquiry or investigation of foreign companiesCorrect
  3. CThey apply only to foreign companies having a subsidiary in India
  4. DThey apply only if the Reserve Bank of India so directs

Explanation

Section 228 states that the provisions of the Chapter apply mutatis mutandis to inspection, inquiry or investigation in relation to foreign companies. The other options add conditions that the section does not contain.

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