Common Seal

Published on: 22 Mar, 2024

The Common Seal, also known as the Corporate Seal or Company Seal, is an official seal used by corporations, organisations, or other legal entities to authenticate or validate documents and agreements. It typically bears the company’s name, logo, and other identifying information and is affixed to documents to signify the company’s approval or authorisation.

 

Key points about the Common Seal:

  1. Legal Status: The Common Seal is a legal instrument often required for certain transactions, contracts, and legal documents. Its use may be governed by the company’s Articles of Association or bylaws, as well as applicable laws and regulations in the jurisdiction where the company is incorporated.

  2. Affixing the Seal: The Common Seal is usually affixed to documents by impressing or embossing it onto paper or other materials using a seal press or stamp. The seal impression is often accompanied by the signatures of authorised officers or directors of the company to provide additional authentication.

  3. Authorisation: The use of the Common Seal is typically authorised by the company’s board of directors or by specific individuals designated in the company’s governing documents. The authority to use the seal may be delegated to certain officers or employees of the company, subject to internal controls and procedures.

  4. Purpose: The Common Seal serves various purposes, including the execution of contracts, agreements, deeds, and other legal documents on behalf of the company. It signifies the company’s official approval, consent, or authentication of the contents of the document.

  5. Validity: Documents bearing the Common Seal are generally considered legally binding and valid, provided that they comply with all applicable legal requirements and are executed by the company’s internal procedures and governance framework.

  6. Decline in Usage: While the use of the Common Seal was once a common practice for corporate entities, its usage has declined in some jurisdictions due to advancements in electronic signatures and digital authentication methods. However, in many jurisdictions, especially in traditional or formal contexts, the Common Seal remains an important symbol of corporate authority and authenticity.