When It Is Unlawful to Declare Dividends Because of a Deficiency

Multiple Choice

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.