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 them.

Choose the correct answer from the options given below:

(B), (C) and (D) only

The correct answer is option 4- (B), (C) and (D) only.

(A) The directors of the company are the owners of the company- IT IS NOT TRUE. In the context of business and finance, equity holders are considered owners of a company. This applies primarily to companies that are structured as corporations, where ownership is represented by shares of stock. Equity holders own shares or equity in the company. Each share represents a certain percentage of ownership in the business. The more shares a person or entity holds, the larger their ownership stake. Directors are not owners of the company.  The shareholders are the real owners of the company. Whether the company is run by directors of the company but shareholders are liable to acts of the company.

(B) A company is an artificial person. IT IS TRUE. The company being an artificial person created by law continues to exist irrespective of the changes in its membership. A company can be terminated only through law. The death or insanity or insolvency of any member of the company in no way affects the existence of the company. Members may come and go but the company continues. 

(C) A company has its common seal. IT IS TRUE. The company being an artificial person, cannot sign its name by itself. Therefore, every company is required to have its own seal which acts as official signatures of the company. Any document which does not carry the common seal of the company is not binding on the company.

(D) The liability of the members of the company is limited to the extent of shares held by them. IT IS TRUE.  The liability of the members of the company is limited to the extent of unpaid amount of the shares held by them. In the case of the companies limited by guarantee, the liability of its members is limited to the extent of the guarantee given by them in the event of the company being wound up. 

Thus, statements B, C & D are true.