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. According to the traditional view, company law is concerned with the organisation and functioning of joint stock companies, … While repaying debts, for example, if a person owns 1000 shares of Rs. Companies Act, 2013 provides that, the company shall have a Common Seal from the date of its incorporation. (Company Act, 1994) A joint stock company is ‘an association of many persons who contribute money or money’s worth to a common stock and employ it for a common purpose’. There are various aims as well as the objectives of joint stock company. The common seal and the register of common seal has to be kept in the safe custody of the official, who is duly authorised by the Board of Directors of a company in this regard. The main objective is to expand the activities of the company with he help of shareholders. So, the joint stock company was established. Are you looking for collection of common seals of different joint stock companies and the relevant information about common seals introduction ? A company seal (sometimes referred to as the corporate seal or common seal) is an official seal used by a company.Company seals were predominantly used by companies in common law jurisdictions, although in modern times, most countries have done away with the use of seals.. Nevertheless, there are fears in the official circles that the company may dip into the red again if it is not managed properly. 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. When dealing with business on a fairly large scale, a joint stock company is the most suitable form of business organisation. Related posts: What advantages does a joint stock company enjoy over other forms of business organization? A joint stock company is an association that falls between the meanings of an organization and company as far as investor risk. Company seals were predominantly used by companies in common law jurisdictions, although in modern times, most countries have abrogated the use of seals. Transferability of Shares : Members of a joint stock company are free to transfer their shares to anyone. Any document bearing the common seal of the company, and signed by two directors, legally binds the company. It may have … These companies are all joint stock companies. ASK ANY QUESTION ON Main Documents of Joint Stock Company. Major few objectives are given below. When you think of all the largest companies in the world, these are not proprietorships or partnerships. Brief notes on different Types of joint stock companies Short essay on joint stock companies What are the Advantages … Any document bearing the common seal of the company, and signed by two directors, legally binds the company. Common seal A joint stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. In the present business environment, the company law is the principal law affecting the organisation, administration and management of corporate business. 6. ... use, and formation of the common seal, the way of taking loan are clearly stated. Investors receive shares in proportion to the funds put in, and the shareholders elect directors to manage the business. The … Common Seal Definition: Joint stock company is an artificial person created by laws, it therefore cannot sign documents for itself. 7] Transferability of Shares. Traditionally, certificates might have been needed to proof claim to dividends, with a receipt for the payment being supported on the back. To transact any business outside India, if authorised by its articles, a company can use a seal which shall be a facsimile of the common seal of the company, with the addition on its face of the name of the territory, district or place where it is to be used.

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