Question

Paid-up capital can exceed called-up capital.

Hint:

Paid-up capital ≤ Called-up capital — never greater.

Answer 1

Called-up capital is the amount demanded by the company from shareholders, while paid-up capital is the amount actually received. Shareholders can never pay more than what the company has called for; they can either pay the full called amount or default partially. Therefore, paid-up capital can be equal to or less than called-up capital but never more. This makes the given statement false as it is legally and logically impossible for paid-up capital to exceed the called amount.