Several Years Back Dean Pigeon with Two Friends Invested $300,000

Multiple Choice

Several years back Dean Pigeon with two friends invested $300,000 equity capital into a new corporation. As it turns out, they have more capital in the business than they can profitably use. Will the CBCA allow them to take out the excess capital?

A) No, since the excess is not accumulated retained earnings.
B) Yes, as long as the corporation can satisfy both parts of the solvency test.
C) Yes, provided the corporation has no creditors.
D) No, because a "capital fund" is not available to shareholders.
E) Yes, provided the corporation can satisfy the court that the capital is truly unutilised.