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:

Let me evaluate each statement about a company:

(A) The directors of the company are the owners of the company.

This is incorrect. Directors are appointed by the shareholders to manage the day-to-day affairs of the company. The shareholders (members) are the actual owners of the company. Directors may or may not own shares in the company.

(B) A company is an artificial person.

This is correct. A company is a separate legal entity created by law, distinct from its members. It has its own rights, obligations, and existence independent of its shareholders. It's called an artificial juridical person as it exists in the eyes of law.

(C) A company has its common seal.

This is correct. A common seal acts as the official signature of a company. It's used to authenticate important documents, contracts, and certificates. The seal typically contains the company's name and other required details.

(D) The liability of the members of the company is limited to the extent of shares held by them.

This is correct for a company limited by shares. The members are liable only up to the unpaid amount on their shares. Their personal assets cannot be used to pay the company's debts, which is a key feature providing protection to shareholders.

Statements B, C, and D are true, while statement A is false.

Correct Answer: Option 4: (B), (C) and (D) only