When it is unlawful to declare dividends because of a deficiency in the capital fund, and yet the shareholders want a quick pay- out, then
A) Revenue Canada can issue "not withstanding" tax credits.
B) shareholders can lend money to the corporation and receive interest payments in return.
C) the corporation can re- capitalise at a lower amount.
D) the corporation needs to earn enough profits to restore the deficiency.
E) wages can be paid to officers instead of dividends.

Question

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The Answer of When it is unlawful to declare dividends because of a deficiency in the capital fund, and yet the shareholders want a quick pay- out, then
A) Revenue Canada can issue "not withstanding" tax credits.
B) shareholders can lend money to the corporation and receive interest payments in return.
C) the corporation can re- capitalise at a lower amount.
D) the corporation needs to earn enough profits to restore the deficiency.
E) wages can be paid to officers instead of dividends.

When It Is Unlawful to Declare Dividends Because of a Deficiency