CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation
Under the Companies Act, 2013, the provisions of the Chapter on inspection, inquiry and investigation apply to foreign companies in which manner?
The Chapter on inspection, inquiry and investigation applies to foreign companies mutatis mutandis, meaning with necessary modifications. Section 228 expressly extends these provisions to foreign companies, so they are not excluded and no turnover or court-reference condition is imposed.
- AMutatis mutandisCorrect
- BOnly to the extent of the Indian branch's turnover
- COnly on a reference by the Supreme Court
- DThey do not apply to foreign companies
Explanation
Section 228 provides that the provisions of the Chapter apply mutatis mutandis to inspection, inquiry or investigation in relation to foreign companies. Hence the claim that they do not apply is wrong.
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