Paid up Capital. It is that part of called up capital which has actually

been paid by the members. In other words, it means total called up capital minus calls in arrears. By the Companies (Amendment) Act 2000 every public

company must have a paid up capital of Rs. 5 lakh and private company of Rs. one lakh at the time of its formation.

, 7. Rescn’c Capital. It is that portion of the uncalled capital of a company which the company has decided by special resolution in terms of Section 99

ofthe Companies Act, not to call except in the event of company

being wound up. Reserve capital provides additional security to the creditors. Once the company has created reserve capital in this way, it cannot charge

it as security for loans unlike the uncalled capital. Moreover, reserve capital cannot be turned into ordinary capital without leave of the court nor it can be

cancelled in reduction of capital (Natal Land Company f:. Paulin Colliery Syndicate). It must. however, be noted that reserve capital of a company is

different from its capital reserve which is always created out of company’s profit.

2. Issued Capital. It is that part of the authorised capital which is allotted by the company either for cash or for consideration other than cash and includes

shares allotted to the signatories to the Memorandum of Association.

3. Subscribed Capital. It is that portion of the issued capital at face value, which has been taken up by subscribers of shares in the capital either for cash

or for consideration other than cash. Thus, it is not necessary that the entire share capital must be subscribed. Where in a company, the shares are fully

paid-up the subscribed capital should be equal to the issued capital.

4. Called-Ul) Capital. It is that portion of the subscribed capital which has been called up or demanded on the shares of the company. For example, where

Rs. 5 has been called upon each of 50,000 shares of a nominal value of Rs. 10-, the called up capital shall be Rs. 2,50,000-.

5. Uncnlled Capital. It is’ that total amount which is not yet called up or demanded by the company on the shares subscribed, which the shareholders are

liable to pay as and when called. Thus, in the above case. the uncalled capital is Rs. 2,50,000-.

6. Paid up Capital. It is that part of called up capital which has actually been paid by the members. In other words, it means total called up capital minus

calls in arrears, By the Companies (Amendment) Act 2000 every public

company must have a paid up capital of Rs. 5 lakh and private company of Rs, one lakh at the time of its formation.

, 7. Resen’e Ca’pital. It is that portion of the uncalled capital of a company which the company has decided by special resolution in terms of Section 99 of

the Companies Act, not to call except in the event of company

being wound up. Reserve capital provides additional security to the creditors. Once the company has created reserve capital in this way. it cannot charge