Question:
‘Reserve Capital’ can be utilised:
‘Reserve Capital’ can be utilised:
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Reserve capital is a special uncalled capital reserved strictly for company liquidation.
Updated On: Feb 9, 2026
- any time during the life of the company.
- only at the time of winding up of the company.
- to issue fully paid bonus shares.
- to provide for premium on the redemption of preference shares.
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The Correct Option is B
Solution and Explanation
Reserve capital is the portion of uncalled capital that a company resolves to call only at the time of winding up. It cannot be used during the life of the company.
Final Answer: only at the time of winding up of the company.
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