Reserve capital refers to
-
capital reserve
-
that portion of called up share capital which shall not be capable of being called up except in the event and for the purposes of the company being wound up
-
that portion of uncalled share capital which can not be called up at any time before the company is being wound up
-
none of the above
As per Section 65 of the Companies Act, 2013, a Company may decide by passing a resolution that a certain portion of its subscribed uncalled capital shall not be called up except in the event of winding up of the company which is called Reserve Capital. Reserve Capital is different from Capital reserve. Reserve capital which is portion of the uncalled capital to be called up in the event of winding up of the company is entirely different in nature from capital reserve which is created out of capital profits only.