• Rashi Srivastava

Provisions of Section 65 of Companies Act 2013

Updated: Mar 30

#companiesact #companieact2013 #section65 #corporatelaw #capitalreserve #reservecapital #companylaw #limitedcompany #unlimitedcompany #authorizedcapital #sharecapital #capitalgains #capitalloss #subscribedcapital



companies act 2013 section 8 of companies act 2013 the companies act 2013 companies act company registration limited company pvt ltd company registration private limited company registration register a limited company section 8 company registration the companies act companies act 2013 sections company law 2013 register ltd company pvt limited company companies act 2013 rules pvt ltd registration limited company registration ca 2013 provisions of companies act 2013 business act pvt limited company registration private placement companies act 2013 private company registration a limited company ltd company registration under the companies act 2013 registration of the company is under the companies act 2013 private ltd company registration register private limited company under companies act 2013 private limited registration register pvt ltd company companies rules public limited company registration company under companies act 2013 directors under companies act 2013 pvt company registration 2013 act company law act 2013 private company under companies act 2013 co act 2013 register ltd ltd registration company registered under companies act 2013 registration of company under companies act 2013 private placement of shares companies act 2013 the company company companies registered under companies act 2013 register of directors companies act 2013 private limited company act all sections of companies act 2013 company registered under section 8 of companies act 2013 limited company and private limited company companies act section compliances under companies act 2013 directors companies act 2013 ca act 2013 act private limited private placement rules companies act 2013 pvt ltd company act company pvt ltd registration register under companies act 2013 section 8 company under companies act 2013 company registered under companies act registers under companies act 2013 company registration company the companies register limited company act registration of a company under companies act 2013 company registration act 2013 public limited company companies act 2013 about companies act 2013 company law section companies act 2013 latest directors of company under companies act 2013 under the companies act 2013 registration of company is companies act 2013 all sections the companies law provision under companies act 2013 registration of companies act 2013 private limited company share capital company registration under companies act 2013 limited company law private limited company act 2013 companies registered under the company act 2013 compliance of companies act 2013 pvt limited registration pvt registration private limited company registration under companies act 2013 register pvt ltd companies act registration rules for private placement companies act 2013 companies act compliances for private limited company companies registered under companies act all sections of company law for pvt ltd company registration section 65 of the companies act under the companies act 2013 registration of the companies section 8 company limited by shares registration of companies under companies act 2013 register public limited company private company compliances companies act 2013 all about companies act 2013 register limited register ltd business pvt ltd co registration register private limited private ltd registration register a limited business a company company companies act 2013 and rules limited company share capital limited registered company company registered under the companies act 2013
Provisions of Section 65 of Companies Act 2013



Amended and updated notes on section 65 of Companies Act 2013. Unlimited Company to provide for reserve share capital on conversion into a limited company.


SECTION 65 of the Companies Act 2013 states provisions related to Reserve Capital which a company with share capital should retain to meet the liquidation prerequisites .

Now let's discuss What reserve capital is and Why is it Mandatory to be Maintained?



Reserve Capital is a portion of Subscribed uncalled capital that will be called up at the time of dissolution of the Company.

In other words, it is part of the equity share capital / authorized capital of the Company, which cannot be called up until and unless the Company is on the verge of liquidation.


As it is created out of Authorized Capital, therefore it'll only be utilized for the events (long-term projects, investments, etc.). It is not shown in the Company's balance sheet.


Capital Reserve and Reserve capital are two different concepts. They might seem similar, but in actuality, they are poles apart.

  • Reserve Capital is created out of Authorized capital and a part of equity share capital used to meet dissolution expenses.

  • Capital Reserve is created out of Capital gains and utilized to set off capital losses and unforeseen situations and emergencies like inflation.

Corrected and refreshed notes on area 65 of Companies Act 2013. Detailed conversation on arrangements and rules connected with limitless organization to save share capital on change into a restricted organization.


Part IV (Sections 43-72) of the Companies Act, 2013 (CA 2013) manages the arrangements connected with share capital and debentures. Area 65 of CA 2013 allows limitless organizations to hold share capital on transformation into restricted organizations.



Section 65 of Companies Act 2013: Unlimited Company to provide for reserve share capital on conversion into a limited company

Section 65 shall come into force on 12th September 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.


An unlimited company having a share capital may, by a resolution for registration as a limited company under this Act, do either or both of the following things, namely—


(a) increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the Company being wound up;

(b) provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event and for the purposes of the Company being wound up.



Recently, we have thoroughly examined segment 64 (Notice to be given to Registrar for change of offer capital) of CA 2013. Today, we got familiar with the arrangements of area 65 of Companies Act 2013 read with the Companies (Share Capital and Debentures) Rules, 2014.


Segment 65 of the Companies Act, 2013 has been told by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O.2754(E) dated 12.09.2013. This warning came into force from twelfth September 2013. For example, the beginning date of area 65 is 12-9-2013.




13 views0 comments

Recent Posts

See All

Introduction Chapter XX of the Companies Act, 2013 deals with the Winding-up of the company which is the process of ending a company's life and administering its assets for the benefit of its members

Introduction Chapter XX of the Companies Act, 2013 deals with the Winding-up of the company which is the process of ending a company's life and administering its assets for the benefit of its members

Introduction Section 287 of the Companies Act of 2013, which is part of Chapter XX-Part I, establishes the advisory committee, its composition, and functions during the winding up of a company. This c