who needs a company seal

What Is A Company Seal Used For and Who Needs It?

A company seal, also known as a corporate seal or common seal, is a physical tool or embossed stamp used by a company to validate and authenticate important documents. Here's a breakdown of what a company seal is used for and who typically needs it:

  1. Document Authentication: The primary purpose of a company seal is to imprint a unique mark or impression on documents, signifying that they have been duly authorized and executed by the company. This helps establish the authenticity and integrity of the documents.

  2. Legal Compliance: Company seals are often required by law for specific types of documents, contracts, and agreements. The exact legal requirements vary by jurisdiction, but common examples include deeds, share certificates, and certain formal contracts.

  3. Corporate Governance: Company seals play a role in ensuring proper corporate governance. They are used to authenticate important corporate documents such as minutes of board meetings, resolutions, and other official records.

  4. Share Transactions: When a company issues shares, transfers ownership of shares, or issues share certificates, a company seal is often used to endorse and validate these transactions. This helps maintain accurate records of ownership and provides legal certainty.

  5. Overseas Transactions: In some jurisdictions, company seals are still recognized and required for international business transactions. This is particularly true in countries with a legal system influenced by common law traditions.

In terms of who needs a company seal, it typically applies to incorporated entities such as companies, corporations, and certain types of partnerships. The specific need for a company seal may vary depending on local laws and industry practices. 

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