The use of the common seal should be restricted to the minimum number of cases. It is not necessary to use the common seal for all business, such as approving minutes. The Company Law Review Act 1988 (Cth) abolished the requirement that companies have a seal and also the need for deeds to be executed under seal.
Common uses of company seals include:
- Significant contracts (i.e. not the purchase of a roll of stamps)
- Real (landed) property transfers and land contracts
- Loan documents, mortgages and guarantees
- Occasions where its use is required by a third party
Whenever the common seal is used, its use must be authorised by a resolution of the board. All uses of a company seal should be recorded in a special register kept by a company’s general counsel or legal officer. The register should contain a record of the use of the common seal together with a cross-reference to the management committee minutes authorising its use.
For more information about Common Seal Singapore, please visit https://www.aestamp.com.sg