State corporation laws have done away with requiring corporations to issue paper stocks, and as a result, many publically traded corporations no longer issue paper certificates and have transitioned to electronically filing all corporate shares.
Today, the onset of brokers and electronic filings has made official stock certificates unnecessary. Made official by the corporate seal, these certificates were necessary to show proof of ownership of corporate shares. Official stock certificates were originally used as title to a corporation's stock and issued to all stock holders. Official stock certificates have also lost some of their value and power over time. Although no longer required, the corporate seal still retains a sense of authenticity and a mark of identity for a corporation. As time passed, rubber stamps were preferred and today, most corporate seals are embossed upon a document. CEO, director) as binding upon the corporation.Ĭorporate seals in the past were imprinted on wax upon a document. Rather than a corporate seal, state laws recognize the signature of an individual(s) with actual authority (i.e. Today, a corporate seal may be used for deeds and for bank accounts, but even these uses of the corporate seal are becoming more and more rare. However, as business became more fluid and as technology ushered in the digital age, the corporate seal became obsolete and to a certain extent, a hindrance. Individuals were not allowed to authorize certain corporate acts and so a corporate seal was necessary to prove corporate authority. Any legal or official document that emanated from the corporation required a corporate seal. Since a corporation is considered a separate entity, the corporate seal acted as the signature of the corporation.
Similar to a state seal, the corporate seal was the official mark of the corporation.
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