The Board of Directors signs several Contracts / Agreements, on behalf of the Company, with the help of Common Seal. The Common Seal is the official signature of the Company. It is the seal or seal on which the name of the company is engraved. It is attached to a document to prove its authenticity. A company may have a common seal on its incorporation / registration with the company registrar.
The expression 'Common Seal' is not defined in the Companies Act, 1956. The general practice is to adopt the Common Seal, at the first meeting of the Board of the Company. It must be kept in the safe custody of the director / authorized officer. The Articles of Association, can establish how and when the Common Seal should be placed.