The company seal is a tool used to stamp or emboss important documents of the company to show the document is certified by the Board of Directors.
The seal contains the business’s name, its year of commencement and the country wherein the business was filed. In another terms, a corporate seal is an official signature of the company.
What information should be on a company stamp?
Normally you’ll find the business name, address, telephone number and website. There are various postage formats enabling you to include various info, graphical aspects and colors.
Generally, entrepreneurs choose a basic format (white and black) for increased clarity.
Some of the documents company seal is used:
- Sales agreement
- Documents regarding loans
- Board of Directors meeting minutes
Any corporation might adopt a company seal, alter it as it sees fit and use it according to its own needs. This decision is usually taken in the organizational meeting called by the first directors of the business.
The meeting is typically held as early as possible following the business commencement.
When this meeting is held and the appropriate documents are signed, sealed and put in the minutes book.
The corporation or Limited liability company has the authority to conduct the day-to-day operations of the company.
Among the first orders of business during the meeting is the issuing of stock (for corporation) or membership certificates.
The company seal may be used to stamp the stock or the membership certificates, in the presence of the president’s signature.
This is essential because the certificates and the Board of Directors’ resolution authorizing the issuance of the certificates are the proof that prove ownership in the company entity.
Be sure the stock certificates are correctly stamped and signed by the president, as this could make it harder for somebody to claim ownership with fraudulent certificates, which does happen every once in a while.