I run a small but appropriately successful business. I recently had to transact with another company, and in the document they sent to me, they demanded I use my company seal to authenticate the document. I argued that my signatory should suffice but they opined for the seal being used. I had to agree to their demand so the deal could go through. However, I would like to know what kind of deals or agreements the seal could be used for.
Hi THE Mogulette,
Your agreeing to use your seal so the deal could go through was very wise of you. Such disagreements shouldn't hinder business.
So, about seals.
Basically, an official seal is used by a company to execute documents. The company seal has the company name and CAC registration number.
Although the company seal is for executing documents, it's use should be restricted to the minimum and only very serious transactions or documents. For instance, it is not necessary to use the company seal for all business documents, such as approving minutes of meetings, simple vendor agreements, service level agreements etc.
Some common uses of company seals include: -
- Company resolutions
- Important Contracts and Deeds
- Property transfer (landed in most cases) and execution of land contracts.
- Execution of loan documents,
- mortgages, and guarantees. -
- Occasions where a document will be utilized outside the country.
Before the company seal is used, it must either be authorized in the company's articles of association or by a resolution of the board.
Why not read more about seals, by reading this post on seals the DIY Resources blog
So, keep succeeding THE Mogullette