Information About Common Seals of Different Joint Stock Companies

Loan documents, mortgages, and guarantees

Occasions wherever a 3rd party needs its use

Whenever the common seal is employed, its use should be authorized by a resolution of the board. All users of a corporation seal ought to be recorded during a special register unbroken by a company’s general counsel or legal officer. The register ought to contain a record of the employment of the common seal alongside a credit to the management committee minute authorizing its use.

• Basics of the common seal

Approval– The hair seal ought to be adopted by a resolution of the Board. The common seal is usually adopted at the primary meeting. The impression of the common seal ought to be created a part of the minutes of the meeting during which it’s adopted.

Form and Content– below the provisions of the businesses Act, 1956, the common seal ought to be fabricated from metal and capable of being operated by hand. On the opposite hand, there’s no compulsion below the businesses Act, 2013 that the common seal ought to be fabricated from metal or the other material. The common seal ought to have the name of the corporate and state during which the registered workplace is located graven in clean characters.

Authority- The common seal ought to be glued to any instrument solely by the authority of a resolution of the Board or a committee licensed by the Board.

Affixing of Common Seal– Under the Companies Act, 1956, the following are the provisions and sections related to the Affixing of Common Seal:

1. a) As per Section 48, the deeds can be executed by the Company through its authorized representative under its Common Seal. The affixing of Common Seal needs to be under the authority of the Board.
2. b) As per Section 54, a document or proceeding requiring authentication by a company may be signed by a director, the manager, the secretary, or other authorized officer of the Company and need not be under its Common Seal.

The following are the provisions under the Companies Act, 2013 for the Affixing of Common Seal:

1. a) Article 2(ii) of TABLE F – Articles of Association of a Company Limited by Shares specifies that every certificate shall be issued under the seal of the Company.
2. b) (i) & (ii) of TABLE F and 30(i) & (ii) of TABLE H – (Articles of Association of a Company Limited by Guarantee and not having Share Capital) provides that

(i) The Board shall provide for the safe custody of the seal.

(ii) The seal of the company shall not be affixed to any instrument except by     the authority of a resolution of the Board or of a committee of the Board authorized by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the Board may appoint for the purpose; and those two directors and the secretary or another person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence.

Register of common seal – each company ought to maintain a register containing particulars of documents on that the common seal of the corporation has been basified and will be unbroken at the registered workplace of the corporate.

Custody of common seal– The Common Seal ought to be unbroken at the registered workplace or the other work of the corporate licensed by the Board. The common seal ought to be unbroken within the custody of a director of the corporation or the corporate secretary or the other official, as licensed by the Board.

• Different common seals of joint-stock companies

ANALYSIS OF DATA:

In the past, common seals were created by exploitation wax. The liquified wax was accustomed to building control on the relevant documents endorsing them because of the official transactions of the corporate. On the opposite hand, the up to date seals is indentations or impressions on the paper that serve an identical purpose because of the typical seals.

In some cases, a red wafer is employed within the fashionable common seals to imitate the normal red wax seals that were common within the early twentieth century. The common seal has several uses and edges once used on company documents. The most important is that it makes the documents and deeds entirely authentic and authoritative.

Moreover, the seal makes it positive that the documents aren’t simply cast. Thus, it averts cases of fraud that arise from the short and straightforward forgery of the managers’ signatures. Moreover, the seal is allowed to be used by a restricted variety of staff in a corporation.

In the modern-day, common seals are used as identification and for stigmatization functions. This quality makes the businesses trust the seal manufacturers for the assembly of reliable and effective common seals that service their functions with efficiency.

The client’s name, other extra info specifically requested by the shopper for personalization functions, the state, and year of the company.

CONCLUSION:

To conclude my findings,

As we tend to all recognize that an organization being a man-made person doesn’t have a physical presence, it acts through its Board of administrators for polishing off its activities and for getting into varied agreements. Therefore, the Company uses a common seal as its Signature. The common seal is that the signature of the corporate to any document on that it’s glued and binds the corporate for all obligations undertaken within the document. Corporations Act, 2013 provides that the corporation shall have a standard Seal from the date of its incorporation. However, Corporations Act, 2013 don’t describe the shape, mode of affixing a common seal or its custody, etc.

DISCUSSION:

The discussion has revealed:

“The company seal or the true seal is a relic of British people era, wherever Barons or Lords couldn’t write or maybe sign. To certify a document, they won’t to ceremonially stamp the paper with their rings. This created an indentation on the paper, which was accepted as ‘official.’ A typical seal became necessary for board resolutions, share certificates, the power of a professional person, etc.”

SUGGESTION:

There are a few opinions and suggestions by family and friends whom I discussed my project findings with; they are given below:

• There should be an exhibit held in colleges displaying various types of seals
• Students should be made aware of the company seal

ACKNOWLEDGMENT:

My profound gratitude to all the faculty members of the Department, for their timely assistance and encouragement throughout my research work.

I duly acknowledge the encouragement and support from the research scholars in the department, and all my colleagues and friends.

It gives me immense pleasure to take the opportunity to all the people who are directly or indirectly involved in the completion of my project based on the Collection of common seals of different joint-stock companies and the relevant information about common seals.

With deep reverence, I offer my deepest gratitude _____, without whom this project could not have been fulfilled.

Lastly, I thank Almighty, my parents, family members, friends, and teachers for their constant encouragement and support without which this project would not be possible.

Name of School/College

BIBLIOGRAPHY / REFERENCE:

• https://www.upcounsel.com/define-common-seal
• https://legalvision.com.au/what-is-a-common-seal/
• https://taxguru.in/company-law/relevance-importance-common-seal-companies-act-2013.html
• https://www.a1corp.com.sg/uses-relevance-importance-common-seal-companies/

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