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Question : Reserve capital is a part of:-

Option 1: Paid up capital 

Option 2: Forfeited share capital 

Option 3: Assets

Option 4: Capital is to be called up only on the liquidation of the company


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 4th Jan, 2024

Correct Answer: Capital is to be called up only on the liquidation of the company


Solution : Answer = Capital is to be called up only on the liquidation of the company

Reserve capital is that portion of its uncalled-up Capital that has been reserved for the purpose of liquidation.  Reserve capital cannot be converted back into ordinary Capital without the permission of the company law board.
 

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