Question

The part of share capital, which can be called up only on the winding up of a company, is called __________________.

• A. Authorised Capital
• B. Called up Capital
• C. Sacrificing ratio gaining ratio
• D. Reserve Capital

Answer 1

The correct option is D Reserve Capital

According to Section 2 (8) of the Companies Act, 2013, 'authorised capital' means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of a company. Ans. Part of capital of acompany which is called-up only on winding up is called 'reserve capital'.