Choose the wrong statements about company-

(A) A company is an artificial person.

(B) The company's shares are generally transferable.

(C) Shareholders of a company are liable for the acts of the company

(D) Every member of a company is entitled to take part in its management.

Choose the correct answer from the options given below:

1. (B) and (D) only
2. (A), (B) and (D) only
3. (B), (C) and (D) only
4. (C) and (D) only

Analyzing each statement about a company:

(A) A company is an artificial person → This is correct. A company is created by law and has a separate legal entity distinct from its members, making it an artificial judicial person.

(B) The company's shares are generally transferable → This is correct. Shares are freely transferable in public companies subject to Articles of Association. Even private company shares are transferable with certain restrictions.

(C) Shareholders of a company are liable for the acts of the company → This is wrong. Due to separate legal entity, shareholders have limited liability only up to the unpaid amount on their shares. The company itself is responsible for its acts, not the shareholders.

(D) Every member of a company is entitled to take part in its management → This is wrong. Members are owners, not managers. Day-to-day management is conducted by the Board of Directors elected by shareholders. Members can only exercise control through voting at general meetings and electing directors, not direct participation in management.

The wrong statements are (C) and (D) only.

Correct Answer: Option 4