The following Commercial practice note provides comprehensive and up to date legal information covering:
This Practice Note provides practical guidance regarding the requirements of the company seal. Where a company has a seal and it is being utilised, practitioners must ensure that it complies with the relevant section of the Companies Act 2006. However, note that not all companies have a company seal and even companies that do have seals are not obliged to execute simple documents under seal. For further details see Practice Note: Execution formalities—companies.
We have produced a toolkit that is a comprehensive, interactive resource to help users identify and work through the concepts and common issues when executing documents, including information relating to the use of a company seal. Each section or phase includes practical guidance, precedent clauses and Q&As relevant to that section. For more information, see: Execution toolkit.
Company seals are required to have the company's name engraved in legible characters on them. Failure to comply with this requirement results in a criminal offence being committed by the company and each of its officers. The penalty for breach is a fine not exceeding level 3 on the standard scale.
Where execution using the company seal is adopted, the common seal will normally be affixed to the deed in the presence of the company secretary and one director, or two directors, who attest the sealing by countersigning the deed and describing themselves by
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