In case of companies in India, the Reserve Capital __:
- is part of authorized capital
- can be used only in case of liquidation of the company
Which of the above is / are correct statements?
Both the statements are correct. Reserve capital is a part of authorised capital to company whereas, capital reserve do not form a part of it, it is infact created from revaluation of company’s asset or selling fixed assets of the company.
This question is a part of GKToday's Integrated IAS General Studies Module