In other words, it is the portion of share capital that is reserved by the company and which will be utilized only on the happening of the said event. It is a fundamental rule of English company law that a limited company having a share capital must maintain that capital. Covercy is the first Banking-Embedded Investment Management Platform built for commercial real estate investment firms. If nothing has happened there are no journal entries required! It is the face value of the shares that have been issued to the shareholders. Content Filtrations 6. //

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