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[Cites 0, Cited by 0] [Section 58AA] [Entire Act]

Union of India - Subsection

Section 58AA(7) in The Companies Act, 1956

(7)Where a company had accepted deposits from small depositors and subsequent to such acceptance of deposits, obtains funds by taking a loan for the purposes of its working capital from any bank, it shall first utilise the funds so obtained for the repayment of any deposit or any part thereof or any interest thereupon to the small depositor before applying such funds for any other purpose.