BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 seal
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2 seals
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3 seals
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Optional
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Detailed explanation-1: -Each company shall have only one seal, on its incorporation. It is to be used in the manner as prescribed in the Articles of Association of the Company and the Companies Act, 2013.
Detailed explanation-2: -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. A company shall have only one common seal. The Articles of Association provides the procedure relating to affixing of common seal.
Detailed explanation-3: -The 1956 Act’s language was such that Common Seal was mandatory to be adopted by the Company. When the 2013 Act was promulgated, the Common Seal was mandatory but The Companies (Amendment) Act, 2015 made it optional.
Detailed explanation-4: -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. There is no definition prescribed under the Companies Act, 1956 and Companies Act, 2013.