Blog

07

Monday

August, 2017

Why You Need a Corporate Seal and Stock Certificate Kit for Your Business

To begin with, you are not required by law to have either a Corporate Seal or to issue paper Stock Certificates to your shareholders. So if you legally do not need them, why go to the trouble and expense of getting them? There are several reasons to go that route, but first, let us explore what a kit contains and how the items are used:

  • Your Corporate Seal: If you are a history buff, you have probably watched movies where legal, and often secret, documents were sealed with hot wax and embossed with a signet, often a ring worn by the document’s author. When the document was delivered, the embossed seal told its recipient where the document had originated, and that it had not been tampered with en route. In more recent history, embossed seals, usually made by a press that creates a raised impression on a document, are used by notaries and clerks to signify a document’s originality. Likewise, your Corporate Seal, embossed on contracts and other official company documents, signifies the gravitas and priority given to certain documents, and lets others know that they are official.
  • Your Paper Stock Certificates: While most states do not legally require you to issue paper stock certificates, you may want to do so as a gesture to your stockholders that you are a serious professional who values their investment. Embossed with your Corporate Seal, paper stock certificates give your shareholders a tangible token of their investment, and convey a sense of security in knowing they have invested wisely with a responsible company.
  • Your Customized Binder: Part of running an organization is being organized, and your Corporate Kit Binder provides the ideal place to organize your meeting minutes, store official documents and keep track of your share distributions. Even if you keep electronic records, having hard copies of important documents is never a bad idea, especially if your computer system is hacked.

In summary, while a Customized Corporate Seal and Stock Certificate Kit is not required by law, it can:

  • Give you an aura of professionalism
  • Instill trust in your shareholders
  • Provide a convenient storage place for important documents and meeting minutes
  • Make your contracts and other legal documents look official
  • Provide you with backup hard copies of important documents

 

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