Is the that-clause in the following sentence a predicative complement or a displaced subject with it being the dummy subject?
It seemed that he was correct.
My understanding is that if the that-clause is a subject, then the sentence could be paraphrased to That he was correct seemed. which seems ungrammatical.
It would become grammatical though, if to be true is added.
That he was correct seemed (to be true).
I don't know whether I can analyze a sentence like that.
However, if the that-clause is a predicative complement, then what does it refer to?