A basic fundamental rule of company law is that a company may not purchase its own shares. Explain the exceptions to this rule.

• where it acquires its own fully paid shares otherwise than for valuable consideration.
• redemption of redeemable preference shares in accordance with the articles and the Companies Act
• acquisition of own shares pursuant to a court order
• where shares are forfeited for non-payment of a call or are surrendered in lieu of forfeiture.

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