1.

What is common seal? Explain.

Answer»

Common seal:

  • A company has a ‘seal’ or say stamp is used while dealing with third parties, entering into contracts, issuing share certificates, documents and day-to-day transactions of the company.
  • This seal is called ‘common seal’ because it can be used by any authorized officer of the company.
  • Stamping a document with this seal means that the company expresses its consent to whatever is mentioned in the document.


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