What is meant by Reserve Capital? (C.B.S.E. 2019)


According to section 65 of the Companies Act, a Company may. by a special resolution, determine that a portion of its uncalled Capital shall not be called up, except in the event of winding up of the Company. In such a case, that portion of the subscribed capital becomes Reserve Capital. It is available only for the creditors on the winding up of the company.

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