Vir is a director in DJA Ltd. (the company). The company holds 75% shares of MRN Ltd. Vir wants to inspect the books of MRN Ltd. Examining the provisions of the Companies Act, 2013 advise whether Vir, the director of DJA

In accordance with the provisions of the Companies Act, 2013, as contained in Section 128(3), any director can inspect the books of accounts and other books and papers of the company during business hours. The expression 'Books and Papers' has been defined in Section 2(12) which includes accounts, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form. The company is, therefore, required to make available the aforesaid books and papers for inspection by any directors. Such inspection may be done by any type of director-nominee, independent, promoter or whole time. However, according to the proviso to sub-section (3) of the section, the inspection in respect of any subsidiary of the company shall be done any person authorised in this behalf by a resolution of the Board of Directors. In the present case Vir, may inspect the books of MRN Ltd, only when he is authorised by the Board of the DJA Ltd, in this context.