What is Reserve share capital?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Portion of uncalled capital to be called only at liquidation.
A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called ‘Reserve Capital’ of the company. It is available only for the creditors on winding up of the company.