A corporation is a business entity in which different shares may be purchased and owned by shareholders. Each shareholder owns shares of the company proportionally, evidenced by their shares (certificates of ownership). That allows unequal ownership of a business with some shareholders who own more than one company than others. Shareholders are able to transfer their shares to others without any effect for the continued existence of the company.
Common seal
The Board of Directors signs several Contracts / Agreements, on behalf of the Company, with the assistance of Common Seal. The Common Seal is the official signature of the Company. It is death 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 in its incorporation / registration with the company registrar.
The expression "Common Seal" is not defined in the Companies Act of 1956. The general practice is to adopt the Common Seal in the first Board of Directors of the Company. It must be kept in the custody of the authorized director / officer. The Bylaws may establish how and when to place the Common Seal.