{"id":19424,"date":"2018-01-03T13:57:04","date_gmt":"2018-01-03T05:57:04","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/?p=19424"},"modified":"2023-10-11T17:24:10","modified_gmt":"2023-10-11T09:24:10","slug":"companies-act-amendments-and-the-use-of-a-common-seal","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/blog\/companies-act-amendments-and-the-use-of-a-common-seal\/","title":{"rendered":"Companies Act Amendments and The Use of a Common Seal"},"content":{"rendered":"

How the Updated Companies Act Changed the Common Seal Use<\/h2>\n

\"CompaniesThe Companies (Amendment) Act 2016<\/a> amended the Companies Act 2016 (CA 2016) to provide for a new way of executing documents by companies. It came into effect on March 31, 2017. One of the key changes made by this act was using a common seal by Singapore companies. Previously, a company could only execute a document by affixing its common seal.<\/p>\n

The amendment also made it easier for companies to execute documents in other ways. We discuss everything about it in this article.<\/p>\n

 <\/p>\n

What Are the New Changes?<\/h3>\n

A New Method of Execution<\/h4>\n

Companies can now execute documents by the signature of two authorised officers, one of whom must be a director. This is in contrast to the previous requirement to affix a common seal.<\/p>\n

Applicability of the New Method<\/h4>\n

The new method of execution applies to all documents, regardless of whether they are required to be executed under a written law, resolution, agreement or constitution.<\/p>\n

Clarification of Law<\/h4>\n

The amendment clarifies the law in relation to the execution of documents by companies. This is likely to be beneficial to the business community.<\/p>\n

The Companies (Amendment) Act 2016 removed the requirement for Singapore companies to have a common seal. This means that companies are now free to choose whether or not to have a common seal. If a company chooses not to have a common seal, it can still execute documents under seal by signing them in the prescribed manner.<\/p>\n

 <\/p>\n

Enhancing Document Execution<\/h3>\n

The Companies (Amendment) Act 2016 also changed how documents are executed under seal. Under the old law, a signed document would have to be affixed with the company’s common seal. Under the new law, a document is executed under seal if it is signed by a director or other authorised officer of the company in the presence of a witness who attests to the signature.<\/p>\n

The amendments to the Companies Act 2016 have simplified the process of executing documents under seal. The amendment is likely to have a positive impact on the business community as it is seen to expedite work matters. This will make it easier for companies to do business and reduce the risk of errors.<\/p>\n

\"Companies<\/p>\n

 <\/p>\n

What Are the Benefits of Not Having a Common Seal?<\/h3>\n

There are several benefits to not having a common seal. These include:<\/p>\n

Reduced Costs<\/h4>\n

There is no need to purchase or maintain a common seal.<\/p>\n

Increased Flexibility<\/h4>\n

Companies are free to choose how they want to execute documents.<\/p>\n

Reduced Risk of Errors<\/h4>\n

There is less chance of errors occurring when documents are not affixed with a common seal.<\/p>\n

If you are contemplating not having a common seal for your company<\/a>, it is crucial to seek guidance from a qualified lawyer to discuss the implications thoroughly. You can also contact us<\/a> at 3E Accounting for more detailed information on how to move forward with or without having a seal.<\/p>\n","protected":false},"excerpt":{"rendered":"

How the Updated Companies Act Changed the Common Seal Use The Companies (Amendment) Act 2016 amended the Companies Act 2016 (CA 2016) to provide for a new way of executing documents by companies. It came into effect on March 31, 2017. One of the key changes made by this act was using a common seal…<\/p>\n","protected":false},"author":57,"featured_media":68435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-19424","post","type-post","status-publish","format-standard","has-post-thumbnail","category-blog","category-15","description-off"],"_links":{"self":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/posts\/19424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/comments?post=19424"}],"version-history":[{"count":0,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/posts\/19424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/media\/68435"}],"wp:attachment":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/media?parent=19424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/categories?post=19424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-json\/wp\/v2\/tags?post=19424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}