We all are aware that a Company being an artificial person does not have a physical presence. Therefore, it acts through its Board of Directors for carrying out its activities and for entering into various agreements. The Company uses Common Seal as its Signature. Here, comes the role of “Common Seal”.
In general, Common Seal means a metal stamp for stamping documents with the name of the company to show that they have been approved officially.
There is no definition prescribed under the Companies Act, 1956 and Companies Act, 2013. As per the Secretarial Standards issued by Institute of Company Secretaries of India, Common Seal means, the metallic seal of a company which can be affixed only with the approval of the Board of Directors of the Company. 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. It is to be used in the manner prescribed in the Articles of Association and the Companies Act, 2013.
Any document, on which the company’s seal is affixed and is duly signed by the authorized official of the company becomes binding on the company.