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A common seal is a very important tool. The usage of it is governed in the Articles od Association of a limited company. It is normally ONLY be used with a resolution passed in the Borad of Directors' meeting. In the resolution, a person, normally a director, of that limited company is authorised to sign the contract and that the Common Seal of the company be affixed thereto. It is quite common that the other party requires the company to produce to them a copy of the minutes of the meeting of the directors to confirm it. The seal is normally affixed at the margin of the page of the contract where the signature of the authorised person appeared.