Offer and Appointment Letters: Do You Really Need a Company Seal and Signature?

Hi all,

Is a company seal needed in the offer and appointment letter if it's already printed on the letterhead? What about the signature of the authorized person?

Seal may not be required if it is on letterhead. Signatures of the authorized person of the company and the employee accepting the offer are mandatory since it is a type of contractual agreement.

Contract Act 1872: Seal not mandatory but ideal. Company CIN is mandatory. Authorized person's signature is mandatory (Digital Signature acceptable).

Company Seal and Appointment Letters

The "common seal" of a company is not typically affixed to the appointment letters issued to employees. There are specific provisions where the common seal should be used, such as in the creation of charges for loans, shares, etc. However, what Prakash wants to know is about the rubber stamp of the authorized signatory who signed the appointment letter. Normally, no rubber stamp is affixed, but it is a good practice to do so. The designation or the words "Authorized Signatory" is a must whenever a rubber stamp is used (normally it's a... for ABC...& Co.. Name:_______ Designation:______ is a very ideal practice).

As others have said, anything can be faked. Nowadays, rubber stamp makers are given severe warnings that they should only accept orders for making rubber stamps from genuine parties whom they can identify. They should obtain the orders in writing on their letterheads, duly signed by a responsible official, and maintain/show them upon inspection. I have come across many makers who refuse to entertain orders from unknown persons. Of course, there are many exceptions too.

Prakash, if you have any doubt, you should contact them and ensure the authenticity.

Regards

Dear Prakash,

A common seal is not commonly used by all company executives. The common seal should only be affixed to any instrument with the authority of a resolution of the Board or a committee authorized by the Board. It should be affixed in the presence of the managing director or any two directors, and the company secretary or any other person authorized by the Board. The Articles of Association may specify other ways to affix the common seal. The individuals present when the seal is affixed should sign every instrument to which the company's seal is attached.

Consider whether each appointment is approved by the Board of Directors or if the appointment order needs to be signed by the MD or Directors of the Company. The common seal is required only for specific documents, such as share certificates and share warrants issued by the company.

Thank you.