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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. 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. There is no definition prescribed under the Companies Act, 1956 and Companies Act, 2013. 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. In this Article we have thrown light on provisions pertaining to Common Seal contained in Companies Act, 1956, Companies Act, 2013 and SS-8. To remove the ambiguity and to prescribe best and uniform practices with respect to affairs pertaining to Common Seal, Council of the Institute of Company Secretaries of India has issued Secretarial Standard-8 (SS-8): “Affixing of Common Seal”. However, Companies Act, 2013 does not describe the form, mode of affixing Common Seal or its custody etc. Companies Act, 2013 provides that, the company shall have a Common Seal from the date of its incorporation.
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Therefore, Company uses Common Seal as its Signature. Common Seal 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. Introduction-As we all know that a Company being an artificial person does not have a physical presence, it acts through its Board of Directors for carrying out its activities and for entering into various agreements.