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Is common seal mandatory on board resolution?

Common Seal Optional: Companies Act, 2013 required common seal to be affixed on certain documents (such as a bill of exchange, share certificates, etc.) Now, with The Companies (Amendment) Act, 2015 coming into force the common seal is no more mandatory.it has been made optional.

Is it mandatory to have common seal?

Now, with The Companies (Amendment) Act, 2015 coming into force the common seal is no more mandatory.it has been made optional. All such documents which required affixing the common seal may now instead be signed by two directors or one director and a company secretary of the company.

Is common seal mandatory?

But Considering the facts, the Common Seal is indispensable. On affixing the common seal, there is a legal obligation on the part of the authorized officials and the Company and must be therefore affixed in accordance with the Articles of Association of the Company on the above-mentioned documents.

Is common seal mandatory under Companies Act 2013?

Common Seal Optional: Companies Act, 2013 required common seal to be affixed on certain documents (such as a bill of exchange, share certificates, etc.) Now, with The Companies (Amendment) Act, 2015 coming into force the common seal is no more mandatory.it has been made optional.

Is common seal mandatory in India?

Common Seal. The Amendment Act has omitted the words 'and a common seal' appearing under Section 9 of the Act which means it shall not be mandatory for a company to have a common seal.

What is the purpose of common seal?

A common seal is as good as a signature. It is used to signify that a particular document is approved or become official under the public office or a private company's common law jurisdiction. Basically, this seal is used for two purposes. The first one is to execute a deed under a company's law.

What does common seal mean?

Definition of Common Seal: It is the signature of the company to any document on which it is affixed and binds the company for all obligations undertaken in the document. In other words, Common Seal is the official signature of the company and each company shall have only one seal, on its incorporation.

What is a common seal used for?

A common seal, also called company seal or corporate seal is physical illustration emboss with company name and Business number of association or business. Common seal was historically used to seal contracts, deeds and share certificates, to make them valid.

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