Section 65 of the Companies Act, 2013
Section 65 of the Companies Act, 2013 deals with the Unlimited Company to Provide for Reserve Share Capital on Conversion into Limited Company.
📘 Section 65 – Unlimited Company to Provide for Reserve Share Capital on Conversion into Limited Company
Where an unlimited company is being registered as a limited company, the company may by resolution determine the portion of its uncalled share capital, which shall not be capable of being called up except in the event and for the purposes of the company being wound up.
📝 Explanation:
This section applies when an unlimited company converts into a limited company.
The company can reserve a portion of its uncalled capital that will be callable only in case of winding up.
This provides a form of security or reserve to cover liabilities during winding up.
✅ Key Points:
Applicable only during conversion from unlimited to limited company.
Requires a resolution by the company.
Helps in maintaining a capital reserve for winding up.
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