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What is meant by “Reserve Capital” ? |
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Answer» Reserve Capital : According to Section 65 of the Companies Act , 2013 , only an Unlimited Company having Share Capital while Converting into a Limited Company , may have a Reserve Capital . The part of the Uncalled Capital which is Never Asked for or Called-up by the Company during its Existence , but only at the Time of Winding Up or Liquidation of a Company , so that it remains as a Cushion or Additional Security for making any Payments to its Creditors is called Reserve Capital . |
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