Which of the following statements does NOT accurately describe a characteristic feature of a Company?
- AA company is formed according to the provisions of Law enforced from time to time.
- BA company has a separate legal entity which is distinct and separate from its members.
- CThe liability of the members of the company is limited to the extent of unpaid amount of the shares held by them.
- DThe company being an artificial person, can sign its name by itself.
Solution & Step-by-step Explanation
A company is an artificial legal person created by law. Because it does not have physical hands, it cannot sign its name by itself. Instead, it acts through a legal substitute known as its Common Seal or via authorized administrative officers. Therefore, Option D is factually incorrect.