Uses, Relevance & Importance of Common Seal for companies

A common seal, also known as the corporate seal, is used by companies in common law jurisdiction and the undertaking of official transactions. As such, common seals are known to issue a sense of security and authenticity to protect documents against forgery and show proof that the decision has been approved by the company.

The inclusion of a common seal on any document ascertains that the host company recognizes and supports the entire act and deed. The seal signifies that the entire company management is in agreement with the contract and all information entailed in the document.

More primary uses of a common seal includes:

• Deeds. They are mainly used on documents that are required to be executed as deeds. These deeds are executed under the corporation’s common seal as opposed to the simple contracts that can be considered legitimate and authentic with the use of the managers’ signatures.

• Some of the essential corporate documents, for instance, share certificates are in a majority of times issued under the company seal.

In the past, common seals were made using wax. The melted wax was used to make an impression on the relevant documents endorsing them as the official transactions of the company. On the other hand, the contemporary seals are indentations or impressions on the paper that serve the same purpose as the conventional seals. In some cases, a red wafer is used in the modern common seals to imitate the traditional red wax seals that were popular in the early 20th century.

Additionally, the red wafer is used to make sure that the company seal is clearly visible on the photocopies of the original document. Each seal company maker in Singapore makes exemplary quality seals to create a clear and discernible embossed impression on the company documents.

In the present day, common seals are used as identification and for branding purposes. The primary components that a seal company maker in Singapore incorporates in the seal are:

• The client’s company name

• Other additional information specifically requested for by the client for customization purposes.

• The state and year of incorporation

The common seal has many uses and benefits when used on company documents. The main importance is that it makes the documents and deeds entirely authentic and authoritative. Moreover, the seal makes sure that the documents are not easily forged. Thus, it averts cases of fraud that arise from the quick and easy forgery of the managers’ signatures. Moreover, the seal is authorized for use by a limited number of employees in an organization.

Every seal company maker in Singapore strives relentlessly to make sure that the seals they make are professional and not easily forged. This quality makes the companies trust the seal makers for the production of reliable and effective common seals that service their purposes efficiently.

Posted on: March 17, 2016

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