- 1 INTRODUCTION:
- 2 AIMS AND OBJECTIVES:
- 3 METHOD AND METHODOLOGY:
- 4 DETAIL REPORT OF PROJECT:
- 5 ANALYSIS OF DATA:
- 6 CONCLUSION:
- 7 DISCUSSION:
- 8 SUGGESTION:
- 9 ACKNOWLEDGMENT:
- 10 BIBLIOGRAPHY / REFERENCE:
Board of administrators signs numerous Contracts/Agreements, on behalf of the corporation, with the assistance of common seal. The common seal is the official signature of the corporate. It dies or seals on that, the name of the corporation is carved. It’s mounted to a document to prove its genuineness. An organization will have a typical Seal on its incorporation/registration with the Registrar of corporations.
The expression ‘Common Seal’ isn’t outlined within the Corporations Act, 1956. General follow is to adopt the common seal, at the primary committee meeting of the corporate. It should be unbroken below the safe custody of approved director/officer. The Articles of Association could commence however and once the common seal should be mounted.
AIMS AND OBJECTIVES:
The aim of this project is to do the collection of common seals of different joint stock companies and the relevant information about common seals.
There are many objectives for this project. Major few objectives are given below.
- To understand what is a common seal
- To know where the common seal is used
- To understand the need for a common seal
- To know the importance of common seal in a joint stock firm
- To ascertain any doubts regarding common seal
- To understand the importance of common seal
METHOD AND METHODOLOGY:
The method used to gather the required information on the project is an internet survey method. The Internet has extensive information on this subject. It has a vast collection of data on a common seal. The survey has unveiled information about this topic which has covered major few points which are listed below and explained in a detailed report of the project.
- What is a common seal
- Modern uses of the common seal
- Basics of the common seal
- Different common seal joint stock companies
DETAIL REPORT OF PROJECT:
What is a common seal
A company seal (sometimes mentioned because the company seal or common seal) is an officer seal employed by a corporation. Company seals were preponderantly employed by corporations in common law jurisdictions, though in the present time, most countries have done away with the utilization of seals.
In the UK, a corporation could have a corporation seal below the provisions of corporations Act 2006 section forty-five. it should have additional seals for alternative territories and for issue securities. These seals have the extra legend of the territory or the word SECURITIES. a corporation may need still to seal documents as a way of protection against forgery.
Traditionally, the seal was of some legal significance as a result of the affixing of the seal signification that the document was the act and deed of the corporate, whereas once a document was just signed by a director, then that was deemed to be an act distributed on behalf of the corporate by its agents, that was subject to applicable restrictions and limitations below the normal law of agency
Modern uses of the common seal
Although it isn’t needed for a business to own its own company seal, it will generally be helpful to make one. However, technology advancements are slowly phasing out this side of contracts and different legal documents. A seal is sometimes accustomed to creating a document look official and authoritative.
If you are doing need a seal for your business, you’ll be able to simply order one online through knowledgeable incorporation services company. They supply company kits that embody documentation for your business, share certificates, member certificates, and also the seal itself.
Significant contracts (i.e. not the acquisition of a roll of stamps)
Real property transfers and land contracts
Loan documents, mortgages, and guarantees
Occasions wherever its use is needed by a 3rd party
Whenever the common seal is employed, its use should be authorized by a resolution of the board. All uses 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 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:
- 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.
- 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:
- 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.
- 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 at 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 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 for by the shopper for personalization functions, the state and year of the company.
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. 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 common seal or its custody etc.
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.”
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
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 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: