Called-up share capital represents the portion of shares that the company has requested shareholders to pay for. Companies issue shares to raise capital, and shareholders may initially pay only a part of the total value. When a company calls up share capital, it demands shareholders to pay the remaining amount.

Example: A media company issues 1,000 shares worth £5 each. Initially, shareholders pay £2.50 per share, and the company calls up the remaining £2.50 after six months to fund expansion. Shareholders are required to pay the called-up amount within a specified period to retain their ownership rights.

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