Stamp paper

when it is mandatory to file an affidvit and indemnity bonds for all the directors then it is mandatory to purchase the stamp paper individually

SIr,

For further clarification. 

The board of diorectors have authorised one of the directors to complete all the formalities. However, All the directors are to sign affidavit and indemnity bond individually.
My question is whether the authorised director can purchase stamppapers in his name on behalf of all the directors ???? 

1) Stamp paper needs to be purchased in the name of all (practically impossible) or "any one" of the executants. It is also ok if it is bought in the name of an interested party, e.g., the party in whose favour the indemnity/affidavit is being executed.

2) You can buy a stamp paper in the name of one of the Directors, and execute the Indemnity, where all Directors sign on the Indemnity. Alternatively, if there are 5 Directors, 5 stamp paper needs to be bought in individual names, and Director-1 needs to execute Indemnity-1 on stamp paper bought in the name of Director-1; Director-2 needs to execute Indemnity-2 on stamp paper bought in the name of Director-2. and so on. 

3) Similarly, You can buy a stamp paper in the name of one of the Directors, and execute the Affidavit, where all Directors sign on the Affidavit. Alternatively, if there are 5 Directors, 5 stamp paper needs to be bought in individual names, and Director-1 needs to execute Affidavit-1 on stamp paper bought in the name of Director-1; Director-2 needs to execute Affidavit-2 on stamp paper bought in the name of Director-2. and so on.

4) Your statement "The board of diorectors have authorised one of the directors to complete all the formalities. However, All the directors are to sign affidavit and indemnity bond individually." is contradictory. I believe all Directors are to execute Indemnities and Affidavits individually. If that is correct, you can refer to Sl no.2 and 3 above and go ahead according to your convinience.
 

Mr. Das Thank you very much for the clarification. WIth your reply query in my mind is more or less clarified. However, I would further like to specify the scenario.

We have purchased 3 stampapers for the 3 directors so that they can sign individually. But, all the stampapers have been purchased in the name of authorised directors.

For example :

Mr.A, Mr.B, Mr.C directors of XYZ pvt ltd hold a meeting in which they decide to close XYZ pvt ltd. Mr A was authorised to complete all the formalities. Now as per sec506 of companies act all the directors are required to sign an indemnity and affidavit to fulfill all lawful liabilities which arises after the closure of the company.  

three Stamppapers of Rs100 each were purchased in the name of Mr A.

Mr. A will sign for his affidavit and indemnity.

Can Mr B and Mr C sign for their affidavit and indemnity on stamppapers purchased in the name of Mr A ???   

1) Please do not execute "Indemnity" and "Affidavit" in the same stamp paper. These two are very different and though I am not sure whether execution of something like "Indemnity cum Affidavit" on a single stamp paper is wrong legally, I would strongly suggest to execute these two on different stamp papers. Further, in e-stamp papers used in N.Delhi, there is a "descripttion of document" (meaning "what" will be executed on the stamp paper) which needs to be mentioned to the stamp vendor while purchasing, and this data is printed on the e-stamp paper. This can be either "Indemnity" or "Affidavit", but not both. Make sure the stamp paper where descripttion of document is Indemnity is used for executing Indemnity only, and where descripttion of document is Affidavit is used for executing Affidavit only. If you don't do this, it will be a serious lapse.

2) Coming to your query, the answer depends on whether Mr A can be called an "interested party". This is a grey area and I cannot be 100% sure that it will be ok to execute indemnity/affidavit by Mr B and C on stamp papers bought in the name of Mr A. See my suggestion in the next point.

3) I think that "Mr A was authorised to complete all the formalities" does not apply to execution of Indemnity and Affidavits. Here all the Directors have to execute Indemnity & Affidavits separately & individually, while other formalities may be completed by Mr A alone in representative capacity. I think that why this issue is being raised by you is that you wish to make the documents perfect so that there are no problems in future.  To that end, I would suggest this: buy 6 stamp papers (SP) as follows:- SP1-in the name of Mr A, "descripttion of document" is Indemnity,  SP2-in the name of Mr A, "descripttion of document" is Affidavit, SP3-in the name of Mr B, "descripttion of document" is Indemnity, SP4-in the name of Mr B, "descripttion of document" is Affidavit, SP5-in the name of Mr C, "descripttion of document" is Indemnity, SP6-in the name of Mr C, "descripttion of document" is Affidavit. Execute the documents accordingly. This will be perfect and there will be no grey areas for the future.

In your scenario stamp papers should be in director's name as they are signing at their individual capacity but if it is on behalf of the company it should be on company's name not on any aouthorised signatory's name

stamp paper be purchased in the name of company and be executed either by the authorised director through resolution or by all the directors under the title JOINT AFFIDAVIT

n.k.manchanda

advocate

If E stamppapers are purchased in wrong name ? is there any procedure to rectify the name or get the stamppapers issued in the correct name???

Please guide..