Reserve capital, Business Law and Ethics

Assignment Help:

RESERVE CAPITAL:

The reserve capital is defined by S.62 of the Act as the portion of the issued but uncalled capital of a limited company which the company's members, by special resolution, have resolved that the company shall not call up unless and until it is in liquidation. It is to be called up only for purposes of the liquidation. As soon as the resolution is passed, the capital is, as it were, "put on reserve". The directors' power under the articles to make calls on shares will not be exercisable in respect of that capital, unless the company is being wound up. It is referred to in the marginal note to S.62 as "the reserve liability" of a limited company.


Related Discussions:- Reserve capital

Define the term - media are a potentially privileged, Define the term - Med...

Define the term - Media are a potentially privileged Media are a potentially privileged means of communication in three ways: They help to coordinate and link policy relevant a

States law of refugees, State law of refugees Under international law, ...

State law of refugees Under international law, refugees are individuals who are outside their country of nationality or habitual residence; who have well-founded fear of discri

Successfully sue michael in negligence, It was late at night and very wet a...

It was late at night and very wet and, rather than wait for a taxi to take her home, Anna was only to happy to accept a lift from Michael. He smelt strongly of alcohol and had trou

Counselling psychology , Hypothetical case example: Allison is an 18 ye...

Hypothetical case example: Allison is an 18 year old female student is the first year of an undergraduate university degree. She shares a double room in the university dorm wit

Labour and employment law , You are the HR manager of a large manufacturing...

You are the HR manager of a large manufacturing company which employs both unionized and non-unionized employees. You have a non-unionized employee, Edith, who has worked for the c

Fair work ombudsman options, Q. Fair Work Ombudsman options? The follow...

Q. Fair Work Ombudsman options? The following are a range of potential options for the FWO to mitigate phoenix activity. These options recognise that the FWO does not currently

Chairman - meetings and resolutions, PROXIES - meetings and resolutions: ...

PROXIES - meetings and resolutions: By S.136(1), any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint one more person (

Determine the term - fixed exchange rates, Determine the term - Fixed Excha...

Determine the term - Fixed Exchange Rates With a fixed exchange rate adjustment toward long run equilibrium occurs via monetary effects. This effect is shown in Figure 9.1. At

safeguards interfere with law enforcement, The U.S. Constitution provides ...

The U.S. Constitution provides certain procedural safeguards to an accused, including protections from unreasonable searches and seizures, the right to an attorney and the right to

Explain the main elements of a contract administration plan, QUESTION 1 ...

QUESTION 1 (a) Briefly explain 4 functions involved in ensuring compliance with contract requirements (b) Explain how changes regarding variations and price adjustments are

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd