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An exception to the rule that no company can provide financial assistance for purchase or subscription of its own shares is-
Financial assistance is by a banking company in ordinary course of business
Financial assistance is given at an higher rate of interest
Financial assistance is given to the related parties at an higher interest rate
Financial assistance can be given to Board of directors to control the minority interest.
Banking company can give Financial assistance in its ordinary course of business at an arm length interest rate.
By: Srishti Gupta ProfileResourcesReport error
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