What is a corporate seal for?
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M$2 Answers
Traditionally, the seal was of some legal significance because the affixing of the seal signified that the document was the act and deed of the company, whereas when a document was merely signed by a director, then that was deemed to be an act carried out on behalf of the company by its agents, which was subject to applicable restrictions and limitations under the ordinary law of agency.
Corporate seals are generally only used for two purposes by corporations today:
* Documents which need to be executed as deeds (as opposed to simple contracts), may be executed under the company's common seal
* Certain corporate documents, for example share certificates are often issued under the company seal (and some countries required that share certificates be issued under the common seal)
Physically, seals used to be used to make an impression on melted wax on the relevant document, although modern seals will usually only leave an indentation or impression on the paper (although sometimes a red wafer is used to imitate old red wax seals, and to make the sealing show up better on photocopies).
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M$At the present corporate seals serve very little legal purpose since legitimization of documents only need the signatures of the president and vice president of the corporation to execute and bind corporate entities to contractual or legl obligations.
Corporations still use seals but mostly as means for corporate branding.. Most modern corporate lawsmakes the corporate seals unnecessary. They are still used but rarely and may be use in the execution of deeds though the enforcement of such deeds in most cases does not necessary require seals.
Legal uses of seals include share certificates which are often used by shareholders with the corporate seal emobossed on the documents.
So, it is not necessary for you to have corporate seals since they are no longer necessary to legitimize official documents.
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