Which of the following statements are true with reference to a company?(A) The directors of the company are the owners of the company.(B) A company is an artificial person.(C) A company has its common seal.(D) The liability of the members of the company is limited to the extent of shares held by themChoose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (B) and (C) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Let's analyze the statements given:(A) is False: The shareholders are the true owners of a company. Directors are elected representatives managed to run the day-to-day business operations.(B) is True: A company is an artificial person created by law, having a legal entity separate from its members.(C) is True: A company has a common seal which acts as its official signature (though optional now under recent amendments, it remains a distinct legal characteristic in foundational theory).(D) is True: The liability of members in a company limited by shares is restricted to the unpaid value of shares held by them.Hence, statements (B), (C), and (D) are true.