What is the net assets requirement for public companies to make distributions?

The correct answer is rooted in the regulations governing capital maintenance for public companies, which are designed to protect creditors and ensure that companies maintain sufficient capital to meet their obligations.

When a public company considers making distributions, such as dividends to shareholders, it must ensure that its net assets are not less than the aggregate of called-up share capital and undistributable reserves. This requirement serves to safeguard the company's capital and ensures that all shareholders receive distributions only when it is financially prudent to do so. Called-up share capital refers to the amount of shareholder equity that has been requested and is due to be paid by the shareholders, while undistributable reserves are portions of equity that are not available for distribution due to legal restrictions or company policies.

This approach helps maintain the company's financial stability and protects stakeholders by ensuring that there is sufficient asset backing for the liabilities that the company has assumed. Therefore, maintaining net assets at this level serves as a critical measure of the company's overall financial health before making any distributions to shareholders.

The other options do not accurately reflect the legal requirements governing distributions for public companies and would not fulfill the necessary protective measures for creditors and overall corporate integrity.