Reserve Capital
/ˈrɛzɜrv ˈkæpɪtl/
Definitions
- (n.) Part of a company's share capital that is not called up and can only be used for paying losses or converting into issued capital under specific conditions.
The reserve capital remained untouched except when covering company losses as stipulated.
Forms
- reserve capital
Related terms
See also
Commentary
Reserve capital is distinct from called-up capital and generally represents funds not available for dividend distribution, used mainly as a financial safeguard.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.