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What is meant by Reserve Capital ?...

What is meant by Reserve Capital ?

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According to section 65 of the Companies Act, a Company may, by a special resolution, determine that a portion of its uncalled Capital shall not be called up, except in the event of winding up of the Company. In such a case, that portion of the subscribed capital becomes Reserve Capital. It is available only for the creditors on the winding up of the company.
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