A portion of the uncalled share capital of a company that can be called only in the event of winding up of a company is called:

Correct option is C

The portion of a company’s uncalled share capital that the company decides—through a special resolution—will be called up only at the time of winding up is known as Reserve Capital. This amount acts as a financial safeguard for creditors because it ensures funds will be available during liquidation.
Reserve capital is not available for general business use and cannot be called up during the normal course of operations. It becomes payable only when the company is closing down, thereby increasing creditor security.
Therefore, the correct answer is (c) Reserve capital.
Information Booster
1. Reserve capital arises only when the company passes a special resolution under the Companies Act.
2. It is a part of subscribed capital, but not part of paid-up capital until winding up.
3. Unlike capital reserve, reserve capital cannot be used for writing off losses or issuing bonus shares.
4. It strengthens the protection of creditors during liquidation.
5. Once converted into reserve capital, the amount becomes irrevocable, meaning it cannot be reversed back.
Additional Information
· (a) Uncalled capital: This is the portion of subscribed capital not yet called by the company, but it can be called at any time, not only during winding up.
· (b) Subscribed capital: Represents the part of authorized capital subscribed by shareholders. It includes both called and uncalled capital but does not indicate conditional availability upon liquidation.
· (d) Capital reserve: Created from capital profits (e.g., premium on issue of shares, revaluation). It is used for specific purposes like issuing bonus shares—not related to winding up or uncalled capital.