Identify the true statement in respect of Reserve Capital :-

Reserve Capital is a special type of share capital that a company creates by passing a special resolution. It is carved out from the uncalled portion of the issued share capital.

When shares are issued, the company may not demand the full amount immediately. The portion not yet demanded is called "uncalled capital". From this uncalled capital, the company can earmark a specific amount as Reserve Capital through a special resolution.

The defining characteristic of Reserve Capital is that it cannot be called during the normal course of business. It serves as a safety cushion and can only be called upon when the company is being wound up. This provides additional security to the creditors of the company.

Option 1 correctly states that Reserve Capital is a portion of uncalled share capital that can be called only in the event of winding up of a company.

Option 2 is incorrect because Reserve Capital cannot be called at any time - it can only be called during winding up.

Option 3 is incorrect because it mentions "un-paid share capital" instead of "uncalled share capital". Unpaid capital refers to the called amount that shareholders haven't yet paid, which is different from uncalled capital.

Option 4 is incorrect on both counts - it uses "un-subscribed share capital" (which refers to shares not taken up during issue) and incorrectly states it can be called at any time.