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Called-up capital


That proportion of the issued share capital of a company that has actually been called up. Shares of ane pound may be issued by a new company which does not require the total sum involved immediately but prefers to have the right to raise more funds at a later date without the need to issue further shares. In such an instance it may ask only for half the nominal price of the share when applications are made and shares allotted. leaving the balance to be payable, in total or in separate stated instalments, at later dates. The date of any proposed 'call'. i.e. demand for an amount outstanding, may be fixed at the time of issue or may be left open. Anyone taking a partly paid share subject to the possibility of a call being made and the market price would reflect this fact. Called-up capital is therefore the total amount for which a demand has been made on the shares issued by a company.
Uncalled capital may be immediately payable if winding-up proceedings make it necessary for payment of debts.

Reference: The Penguin Business Dictionary, 3rd edt.