Understanding the Company Seal: Legal Significance and Usage

Definition & Meaning

A company seal is a device used to create an official impression or mark on documents, signifying the company's endorsement or agreement. Traditionally, it is an embossing press that requires the signatures of two company officers, such as directors or a company secretary, to validate its use. While the law allows companies to indicate agreement without a seal since 1989, many still prefer to use one. In some cases, a company's articles of incorporation may mandate the use of a seal, overriding general legal provisions.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A corporation enters into a lease agreement for office space. The lease document is stamped with the company seal and signed by the president and secretary, signifying formal approval.

Example 2: A nonprofit organization files its articles of incorporation with the state. The articles include the company seal, along with the signatures of its founding members, to validate the document legally.

State-by-state differences

Examples of state differences (not exhaustive):

State Requirement for Seal
California Not required, but often used for formal documents.
New York Seal may be required for certain legal documents.
Texas Not required; companies can operate without a seal.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Notary Seal A seal used by a notary public to authenticate documents. A company seal represents a business, while a notary seal verifies the identity of signers.
Corporate Resolution A formal document that records decisions made by a company's board of directors. A resolution may or may not require a company seal, depending on company policies.

What to do if this term applies to you

If you are involved in a situation that requires a company seal, ensure you have the necessary signatures from authorized officers. Consider using legal templates from US Legal Forms to create or manage documents that may need a seal. If your situation is complex, consulting a legal professional may be beneficial.

Quick facts

  • Typical fees for obtaining a company seal vary by provider.
  • Jurisdiction: Applicable in all states, with variations in requirements.
  • No penalties for not using a seal, but it may affect document acceptance in some cases.

Key takeaways

Frequently asked questions

No, a company seal is not required for all documents. Signatures from authorized officers can often suffice.