Question

Reserve Capital is ______.

Options

• Subscribed Capital

• Capital Reserve

• Uncalled Capital

• Part of the uncalled capital which may be called only at the time of liquidation of the Company.

Answer 1

Reserve Capital is Part of the uncalled capital which may be called only at the time of liquidation of the Company.

Explanation:

Reserve Capital is that specific portion of uncalled share capital which, by resolution, can only be called up on winding up,available for creditors then, and not shown during the company’s life.