Common Seal and Company Seal Maker in Mumbai
Standard Seal: Rs. 400/-
Stainless Steel: Rs. 1,000/-
3 - 4 Working Days
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).
Importance of Common Company Seal:
Under Sections 46 and 48 of the Indian Companies Act, 1956 read as under:
46. Form of contracts
- (1) Contracts on behalf of a company may be made as follows:
- a contract which, if made between private persons, would by law be required to be in writing signed by the parties to be charged therewith, may be made on behalf of the company in writing signed by any person acting under its authority, express or implied, and may in the same manner be varied or discharged;
- A contract which, if made between private persons, would by law be valid although made by parole only and not reduced into writing, may be made by parole on behalf of the company by any person acting under its authority, express or implied, and may in the same manner be varied or discharged.
- A contract made according to this section shall bind the company.
48. Execution of deeds
- A company may, by writing under its common seal, empower any person, either generally or in respect of any specified matters, as its attorney, to execute deeds on its behalf in any place either in or outside India.
- A deed signed by such an attorney on behalf of the company and under his seal where sealing is required, shall bind the company and have the same effect as if it were under its common seal.
Thus, wherever the articles of Association require, the common seal has to be affixed so as to bind the company.