CUET Preparation Today
What is the purpose of a company's common seal? |
To indicate the company's limited liability To act like official signatures of the company To limit the company's contractual obligations To represent the company's branding |
To act like official signatures of the company |
The correct answer is option 2- To act like official signatures of the company. The common seal will act like official signatures of the company. 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. |
