Understanding the Importance and Legal Requirements of a Corporation Seal

-This is an official seal used by a corporate body for the purposes of authenticating and executing legal documents (such as a contract or deed)-The formalities for affixing a corporation’s seal will usually be prescribed by its AOA (Articles of Association) -A company may have a common seal, but doesn’t need one

Features of a company: (Common Seal)

1. What is a corporation seal?

A corporation seal is an official stamp or mark used by a corporate body to authenticate and execute legal documents such as agreements, contracts, or deeds. This seal is a physical tool that is used to represent the company’s authority and signify its approval and agreement on important documents.

2. What is the purpose of a corporation seal?

The purpose of a corporation seal is to legally bind a company to an agreement. When the seal is affixed to a document, it signifies that the company has authorized and agreed to the contents of the document. The use of a seal is a part of the formalities required by a company to execute legal documents.

3. Are there any legal requirements for affixing a corporation’s seal?

Yes, the formalities for affixing a corporation’s seal are typically prescribed in its Articles of Association (AOA). The AOA outlines the company’s rules and regulations, including the process for using the company seal. A company must follow the procedures established by its AOA to maintain the legal validity of its seal.

4. Is it necessary for a company to have a seal?

No, a company isn’t required to have a seal. The use of a company seal is optional, and it’s up to the company’s discretion whether or not to have one. However, some companies choose to have a seal as a way to authenticate important legal documents and maintain the formalities required by their AOA. Ultimately, it’s a decision that a company’s board of directors can make based on their individual preferences and needs.

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