Explain the following terms/concept:Common Seal

1.	Explain the following terms/concept:Common Seal
Answer» 1. A company being an artificial person cannot sign on its own. 2. So, the law requires, every company to have its seal, bearing its name on it. 3. Common seal is a symbol of company’s incorporate existence. It is like a signature of the company. 4. It has to be affixed on all the important documents of the company. 5. It has to be witnessed by a Company Secretary and minimum 2 directors.

Answer»

1. A company being an artificial person cannot sign on its own.

2. So, the law requires, every company to have its seal, bearing its name on it.

3. Common seal is a symbol of company’s incorporate existence. It is like a signature of the company.

4. It has to be affixed on all the important documents of the company.

5. It has to be witnessed by a Company Secretary and minimum 2 directors.

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