Rabu, 14 Oktober 2009

Company Seal that Deal-Literally!

A company seal is a device commonly supplied by Company Formation Agents when registering new companies for clients. The company seal offers a way of embosing documents with the company name and number as a way
of sealing the document. This seal is often used in place of signatures of the authoresed representatives of the company.

In the UK, Prior to the Companies Act 1985, a Company seal was legally binding on a company when a document such as a contract or share certificate was embossed by the seal. Since the Companies Act 1985 (and subsequent
amendments) were introduced the company seal was no longer a legal requirement of a limited company. Instead a company can effectively seal a document with the signature of two company officers, typically a director and secretary of the company.

Although this change in law in the UK would appear to make the company seal a redundant item they are still widely used today. The company
seal still has great importance in other countries and many UK companies doing business overseas will often need to seal a document to complete a contract or agreement.

How does it workThe company seal is actually an embosser as opposed to a stamp that would contain ink of some from. When the seal is pressed onto paper it creates a raised impression of the information contained within the two dies.

The company seal has two dies containing the information to be embossed on to paperwork. One die will have a raised impression and the other die will have the inverted image of this information.
You simply insert a piece of paper between the two dies and press the lever, or spueeze the plier, and the dies come together creating a raised impression on the paper of the information contained on the dies.

This embossing process is a simpler alternative to more traditional seals which involve using wax and a stamp. Wax would be heated and melted onto document which is then impressed with the stamp containing engraved information.

The engraved information would create an impression in the wax and therefore seal the document. As it is not practical to heat wax in many situations the company seal offers a simple alternative by impressing directly into paper.

If you wish to obtain a wax effect from a company seal you can use self adhesive wafers which are designed to look like wax. The wafer is simply placed on the paper before embossing,
then emboss in the centre of the wafer and the raised image is more defined as would occur with a wax seal. Company seal wafers are typically supplied in red (to look like wax) or gold.

By: Michael Harris, www.articlegeek.com

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