A part of an entity’s capital (particularly, callable capital , which is, in turn, part of subscribed capital) that has been called up- i.e., shareholders have been requested to pay. Typically, companies don’t request payment of the full amount of its callable capital (which in turn forms part of authorized capital). Rather, partial payments during allotment (capital allocation) are requested over time. If a company receives full payments for called-up capital from its shareholders, the called-up capital and the paid-up capital (paid-in capital) will be equal.

Callable capital is a special type of guarantee committed by an entity’s shareholders as a last resort for enhancing its financial position in terms of the ability to repay debt obligations to bond holders (creditors) in the event of an extreme financial distress. The portion called up is determined based on an entity’s immediate requirements for equity capital.

Called-up capital is also known as a called-up share capital.