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Question
The portion of the capital which can be called-up only on the winding up of the Company is called ______.
Options
Authorised Capital
Called up Capital
Uncalled Capital
Reserve Capital
MCQ
Fill in the Blanks
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Solution
The portion of the capital which can be called-up only on the winding up of the Company is called Reserve Capital.
Explanation:
Reserve capital is the part of a company’s uncalled share capital that the company resolves will be callable only if it is wound up. It typically arises when an unlimited company converts into a limited company and sets aside this portion by resolution (Sec. 65).
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.199]
