A member is entitled to receive money or other assets from the company under certain circumstances. Which of the following statements is FALSE?

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A member is entitled to receive money or other assets from the company under certain circumstances. Which of the following statements is FALSE?
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A preferential shareholder is entitled to share in the surplus assets of the company, if any, upon the winding up of the company.
Dividends are to be declared by the company provided there is sufficient profit for the dividends to be paid.
As a general rule, return of capital to the members is not allowed during the life of a company.
Distribution to members by the company can take the form of dividends, return of capital and a share of the company's surplus assets, if any, upon the winding up of the company.
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