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    Question

    The portion of the uncalled capital, which can be called

    only at the time of winding up of the company, is known as:
    A Uncalled Capital Correct Answer Incorrect Answer
    B Nominal Capital Correct Answer Incorrect Answer
    C Reserve Capital Correct Answer Incorrect Answer
    D Unsubscribed Capital Correct Answer Incorrect Answer

    Solution

    Reserve Capital refers to the portion of the uncalled capital that can be called only at the time of winding up of the company. It is a special type of capital that is kept aside to be called upon only in the event of the company's liquidation. This provides an additional layer of protection to creditors and helps in the orderly winding up of the company.

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