Note; Things to remember ... and formation of the common seal, the way of taking loan are clearly stated. Joint Stock Company is a new venture in the big business area. A common seal is engraved seal with the company’s name on it. To collect, disseminate and exchange information. 2. Common Seal is the signature of the company to any document on which it is affixed and binds the company for all obligations undertaken in the document. A joint stock company is established under the Company Act, 2053. Main Documents of Joint Stock Company Found mistakes?? The common seal with the name of the company engraved on it is, therefore, used as a substitute for its signature. There are various aims as well as the objectives of joint stock company. Common seals should be approved by board. A joint stock company is an association that falls between the meanings of an organization and company as far as investor risk. Joint stock company is an organization that falls between the definitions of a partnership and corporation. Here, comes the role of “Common Seal”. It should be unbroken below the safe custody of the approved director/officer. 7. Also, this way the base for the sustainable as well as the diversified resources can be make.This is also done in order to increase the capital of the company. After industrial revolution, there must be changed in the production system. Common Seal Definition: Joint stock company is an artificial person created by laws, it therefore cannot sign documents for itself. Increase of authorized capital, raising size of own capital. 8 Important Characteristics of a Joint Stock Company. Here, comes the role of “Common Seal”. Common seal should be fabricated with the metal. Article shared by: ... Any document bearing the common seal of the company, and signed by two directors, legally binds the company. Therefore, Company uses Common Seal as its Signature. The joint stock company is an association of person having a separate legal existence, perpetual succession, common seal, common capital etc. The Articles of Association could commence, however, and once the common seal should be mounted. In case of sole proprietorship and partnership the positions different. To establish and maintain the functions and services needed to fulfill the aims and objects of the Association and to do or cause to be done all acts or things necessary or incidental to carrying out the objects of the Association and to have perpetual succession by its common seal. (Company Act, 1994) A joint stock company is ‘an association of many persons who contribute money or money’s worth to a common stock and employ it for a common purpose’. Document with the common seal is known as the genuine documents of the particular corporation. So, the joint stock company was established. So no document is legally binding on the company until and unless it has a common seal along with the signatures of the directors. 7] Transferability of Shares.