As long as the middle/#3 [Neutral] Relay functions. The Neutral Switch may illuminate the green Neutral Light, yet the "Sidetsand" Relay (middle/#3) could be failed, so that the bike will only start with the sidestand up, clutch lever pulled in.
(I refer to the middle/#3 relay as the "Neutral Relay" as it is actuated by the "Neutral Switch" on the gearbox. The factory literature calls this the "Sidestand Relay" since it prevents starting when the bike is in gear with the sidestand down.)