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Identify the false statements with regard to a company:(A) A company is an artificial person.(B) Company's shares are generally transferable.(C) Every member of a company is entitled to take part in its management.(D) The director of a company is always a shareholder.Choose the correct option:

  1. A
    Only (C)
  2. B
    Only (D)
  3. C
    Both (C) and (D)
  4. D
    Both (A) and (B)

Solution & Step-by-step Explanation

Let us inspect the foundational traits of corporate entities:Statement A (True): A company is recognized as an artificial legal person created by law, possessing distinct rights but operating through natural agents.Statement B (True): In public corporations, equity interests are freely transferable in compliance with regulatory framework exchanges.Statement C (False): Due to the structural separation of ownership and control, management powers are vested in the elected Board of Directors. Individual members (shareholders) do not automatically hold the right to manage daily operations.Statement D (False): There is no absolute legal rule stating that a director must hold equity. Unless a company’s Articles of Association demand a specific number of "qualification shares," an individual without shares can be appointed as a director.Therefore, statements (C) and (D) are both false.

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Identify the false statements with regard to a company:(A) A company is an artificial person.(B) Company's shares are generally transferable.(C) Every member of a company is entitled to take part in its management.(D) The director of a company is always a shareholder.Choose the correct option:
A
Only (C)
B
Only (D)
C
Both (C) and (D)
D
Both (A) and (B)

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