Question

Capital of a company can be called up only in event of winding up

• A. Registered
• B. Issued
• C. Reserve
• D. Revised

Answer 1

Answer:

C. Reserve

Registered (Authorized) Capital: Maximum capital a company can raise. Not specifically “called up” in any situation. Issued Capital: Part of authorized capital actually offered to shareholders. Can be called up anytime by the company, not restricted to winding up. Reserve Capital ✅ Portion of unpaid capital that can only be called up in the event of winding up. Shareholders are liable to pay this portion only if the company is closing. Revised Capital: Authorized capital after it is increased or decreased. Not related to being called up.