Question

On incorporation, a company acquires legal entity with perpetual succession and a __________.

• A. Seal which is optional
• B. Common seal which is compulsory
• C. Rubber stamp which is compulsory
• D. Common seal which is optional

Answer 1

The correct option is D Common seal which is optional

Section 33 of the Act provides for registration of the memorandum and articles. The effect of such registration is as laid down in Section 34 of the Act i.e. the Registrar shall certify under his hand that the company is incorporated. From the date of incorporation, the subscribers of the memorandum and other persons, namely, the members, shall be a body corporate by the name contained in the memorandum, capable of exercising all the functions of an incorporated company and having perpetual succession and a common seal. This makes both of them compulsory. Hence, (B)