“Called-up” and “Paid-up” Capitals.Under the Companies Act 2013.

 “Called-up” and “Paid-up” Capitals

Under the Companies Act 2013, "called-up capital" and "paid-up capital" are terms associated with a company's capital structure. Here's an elaboration on both:

 

1. Called up Capital:

   - Called-up capital refers to the portion of share capital that a company has called or demanded from shareholders.

   - When a company issues shares, it may not require shareholders to pay the entire value immediately. Instead, it may ask them to pay in installments or on a specified schedule.

   - Called-up capital represents the amount that the company has asked shareholders to pay at a particular point in time, whether in full or in part.

 

2. Paid up Capital:

   - Paid-up capital refers to the portion of called-up capital that shareholders have actually paid to the company.

   - It represents the amount of money that shareholders have contributed to the company by purchasing shares and fulfilling their obligations to pay for those shares.

   - Once shareholders have paid the full amount of their obligation, the called-up capital becomes paid-up capital.

   - Paid-up capital is essentially the amount of capital that the company has received from shareholders and can use for its operations, investments, or other purposes.

 

In summary, called-up capital is the total amount of capital that the company has requested from shareholders, while paid-up capital is the portion of that called-up capital that shareholders have 

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