Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Who acts as an official signature of the company?
Options:
Directors
Shareholders
Common seal
Registrar
Correct Answer:
Common seal
Explanation:
Common Seal: The company being an artificial person, cannot sign its name by itself. Therefore, every company is required to have its own seal which acts as official signatures of the company. Any document which does not carry the common seal of the company is not binding on the company.