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Which of the following statements is correct in relation to the "maintenance of capital" principle?

Which of the following statements is correct in relation to the "maintenance of capital" principle?

A.

A company cannot use its share capital which must be set aside as a fund for creditors.

B.

In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.

C.

In general, a company is not able to freely return its share capital to its members.

D.

A company cannot use its share capital, and may only return it to its members with the permission of the court.

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