Which of the following statements about the maintenance of capital rule is/are true?

Question

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The maintenance of capital rule is a fundamental principle of corporate law that requires companies to maintain their capital for the benefit of their creditors and shareholders. The rule is set out in section 245T of the Corporations Act 2001 (Cth) and it provides that a company must not pay a dividend unless its assets exceed its liabilities. However, the rule is not absolute and there are some circumstances in which a company may reduce its capital.

Which of the Following Statements About the Maintenance of Capital