A common seal or a common seal is a tool that is needed in for handling business matters in a company, especially for authorizing important documents that are going to be released.
A common seal is essentially a tool that has two opposing metal plates with the company name engraved in letters. The common seal works by pressing the two metal plates on a sheet of paper so that the company name is embossed on the surface, leaving the official mark that authorized documents necessary.
In order to obtain a company seal, a company must first get incorporated and registered legally with the government. Then, it can register the name of the company for the company seal. At the very least, a company seal must include the company’s name or abbreviations. The logo of the company or a symbol that is particular to the company is also allowed to be made as a company seal.
A company seal is used to execute documents. The documents that are to be executed under a company seal are referred to as deeds, while documents that are executed under hand are called written contracts. A deed has no requirement for consideration to be binding, but a written contract must be considered prior to being bound.
A company seal is allowed to be used by the company directors or a committee of the company’s directors with the appropriate authority given by the directors. There must be a board resolution that is documented in the minutes of a meeting or in a written resolution.
The use of a company seal must be signed by a director and countersigned by the company secretary or another director. A person that has been appointed by the director and given the authority to do so may also sign a document and commence the use of a seal.
A company seal may be used abroad for executing deeds as it does in its origin country. A company may choose to have an official company seal that is to be used for authorizing documents abroad. There should be no difference between the two seals except for the addition of the name of the place where the seal is used.
There is a difference in the use of a company seal abroad. In a different country, a company seal is allowed to be used by a single person who has been appointed by the company to use the seal. This person of authority makes the decision and uses the seal on behalf of the company. It is important to choose carefully before assigning somebody with the task.
When not in use, a company seal must be kept in a safe place. Although there is no formal requirement for the place to keep a seal in, it is important to make sure that it is under high security. This is to prevent losing the company seal or getting it taken by an unwanted person that may cause problems for the company. If necessary, label the place where the seal is kept so that it is easy to find and error can be avoided.