Which of the following statements about share capital is TRUE?

(A) A company's shares are generally transferable.
(B) Share application account is a personal account.
(C) The part of capital which is called up only on winding up of a company is called reserve capital.
(D) Paid up capital can exceed called up capital.

Choose the correct answer from the options given below:

(A), (B) and (C) only

The correct answer is Option (2) → (A), (B) and (C) only

(A) A company's shares are generally transferable. (True).  This is a fundamental feature of a joint-stock company. Shares can generally be bought and sold freely, subject to restrictions in the case of a private company.(B) Share application account is a personal account. (True). Share Application Account is a personal account because it represents the amount received from applicants, which is payable back if shares are not allotted.
(C) The part of capital which is called up only on winding up of a company is called reserve capital. (True). Reserve Capital is the portion of the uncalled capital that a company, by special resolution, has resolved not to call up except in the event of its winding up.
(D) Paid up capital can exceed called up capital. (False). Paid-up capital is the amount actually paid by the shareholders. Called-up capital is the amount demanded by the company. A shareholder cannot pay more than what the company has called for, except for "Calls in Advance," which is treated as a liability, not an increase in Paid-up Capital itself. Therefore, Paid-up Capital (excluding Calls in Advance) can never exceed Called-up Capital.