Law · Commercial Law
A Public Limited Company, registered under the Companies Act 2013, approaches a bank to open a current account. The Articles of Association (AoA) require the common seal of the company to be affixed to all contracts, but the Board Resolution provided for opening the account does not mention a common seal. What is the legal position regarding the common seal and account opening?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A common seal is mandatory for all Public Limited Companies but optional for Private Limited Companies.
- 2The account can only be opened after amending the AoA through a Special Resolution.
- 3The Companies (Amendment) Act 2015 made the use of a common seal optional, making documents signed by authorized signatories valid.✓
- 4The bank must insist on affixing the common seal since the AoA is binding.
Correct answer
The Companies (Amendment) Act 2015 made the use of a common seal optional, making documents signed by authorized signatories valid.
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