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2019-06-14
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2018-03-26
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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 a common seal required?
Common seals are not always required. Generally, companies with constitutions established before 1988 still require a common seal. Unless the company's constitution has been updated since 1988, the company must follow the rules set out in the constitution and use a common seal.
Why common seal is required?
The common seal has many uses and benefits when used on company documents. The main importance is that it makes the documents and deeds entirely authentic and authoritative. Moreover, the seal makes sure that the documents are not easily forged.
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.
Is company stamp a legal requirement?
Company seals serve a different purpose from company chops. A company stamp is optional, but there will be times when it is required, such as when it comes to government documentation, utility or telephone bills and even courier companies which may be required an official company stamp for authorization purposes.
What should a company seal contain?
The company seal is a tool used to stamp or emboss your company's important documents in order to show the document is certified by, and agreed upon by, the Board of Directors of the company. The company seal contains the company's name, its year of incorporation and the state in which the company was filed.
What does a company seal look like?
The traditional layout of a corporate seal is small circle centered within a larger circle. However, modern seals can feature any combination of shapes, including squares, ovals, triangles, hexagons or octagons.
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