The part of capital issued only at the time of liquidation of the company is...
FINANCIAL
JAMB 2023
The part of capital issued only at the time of liquidation of the company is
- A. issued capital
- B. called-up capital
- C. paid-up capital
- D. reserved capital
Correct Answer: D. reserved capital
Explanation
A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called 'Reserve Capital' of the company. It is available only for the creditors on winding up of the company.
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