Which of the following statements are true with reference to a compan…

The correct answer is Option (4) → (B), (C) and (D) only

A company is a body created by law, separate from the people who own it and the people who manage it. Its features follow from this separate legal existence.

(A) The directors of the company are the owners of the company. Incorrect. The shareholders are the owners; the directors are elected by them as a Board to manage the affairs of the company.

(B) A company is an artificial person. Correct. It is created by law and has a legal entity distinct from its members, so it can own property, make contracts and sue or be sued in its own name.

(C) A company has its common seal. Correct. Being an artificial person it cannot sign by itself, so its common seal acts as its signature.

(D) The liability of the members of the company is limited to the extent of shares held by them Correct. A member’s liability is limited to the amount unpaid on the shares he holds; his private property cannot be used for the company’s debts.