CUET Preparation Today
What is Reserve share capital? |
Part of authorised capital to be called at the beginning Portion of uncalled capital to be called only at liquidation Over subscribed capital by the applicants Under subscribed capital by the applicants |
Portion of uncalled capital to be called only at liquidation |
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. |
