Hans receives a dividend from his closely held corporation,causing the company to go insolvent.He was aware of the fact that the dividend would result in insolvency.Which of the following is true?

Question

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A)Dividends which cause the corporation to become insolvent are always illegal.A
shareholder who knew that a dividend was illegal when he received it is personally liable and must return the funds to the corporation.
B)Dividends which cause the corporation to become insolvent are always illegal.A shareholder who knew that a dividend was illegal when he received it is personally liable and must return the funds to the corporation.
C)Dividends which cause the corporation to become insolvent are always illegal.A shareholder who knew that a dividend was illegal when he received it is personally liable and must return the funds to the corporation.
D)Dividends which cause the corporation to become insolvent are always illegal.A shareholder who knew that a dividend was illegal when he received it is personally liable and must return the funds to the corporation.
E)Dividends which cause the corporation to become insolvent are always illegal.A shareholder who knew that a dividend was illegal when he received it is personally liable and must return the funds to the corporation.

Hans Receives a Dividend from His Closely Held Corporation,causing the Company