Question

What is Un-called Capital?

Hint:

Un-called capital = amount not yet demanded from shareholders but still payable.

Answer 1

Un-called capital is the portion of subscribed share capital that the company has not yet demanded from shareholders. When shares are issued, shareholders agree to pay the full nominal value, but the company may choose to call for this amount in instalments. The part that remains unpaid because the company has not yet asked for it is known as un-called capital. It remains a liability for shareholders because they must pay it whenever the company demands. Un-called capital provides financial flexibility to the company, as it can call the remaining amount in the future to meet financial needs. It is different from calls in arrears, which refer to unpaid amounts that were already demanded.