Outline the exceptions to the general prohibition on financial assistance a company for the purchase of its own shares.

The rule in Trevor v Whitworth prohibits the company from purchasing its shares. This rules is now embodied in Section 56 (1) of the Companies Act. However, there are several exceptions to this rule.

If the lending of money is part of the ordinary business of the company and the same is lent in the ordinary course of such business.
If the company has in force a scheme to advance loans to trustees to enable them purchase its fully paid up shares for the benefit of all employees including salaried directors.
 If the company has in force a scheme to advance loans to all its bona fide employees other than directors to enable them purchase its fully paid up shares way of beneficial ownership.

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