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
Answer (1)
24th 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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