Dear All,
Please help me with this query under the Companies Act, 1956:
Section 77 creates restrictions on a company from purchasing or providing financial assistance to purchase its own shares. However, a proviso to the section permits a company to provide financial assistance to a trustee for the purchase of its own shares in accordance with a scheme, where the shares are to be held by the employees or for the benefit of the employees of the Company.
Will this exception be applicable to a scheme for the benefit of the employees of the said company as well as the employees of its group companies, or does this apply where the shares are being purchased specifically for the company's own employees?
Thank you in advance.
