Verifying PRC Corporate Seal Authenticity and Public Security Filings
Verify PRC seals by matching the 13-digit PSB security code against municipal police databases and confirming official Beian filing certificates before signing.
Dual Control Custody
Meaning
Risk management procedures that divide the possession and application of corporate stamps prevent unauthorized commitments by single individuals. Implementing dual control custody requires a firm to separate the physical company chop from the legal representative seal, placing them under the care of different employees. This division ensures that no single person can execute a legally binding agreement alone.
Operational Division
Companies execute transactions by requiring two distinct keys or codes to access the secure safe where the stamps are kept. Under dual control custody, one manager holds the physical stamp while a second officer manages the transaction registry. Each deployment of the seal must be documented in a shared log before the safe can be opened.
Security Benefit
Splitting these responsibilities prevents internal fraud and unauthorized financial transfers by rogue employees. When dual control custody is maintained, the risk of a single worker stamping a fraudulent loan or contract is eliminated. This procedure protects the company from internal and external security breaches.
Legal Precaution
Courts look favorably upon enterprises that enforce these internal mechanisms if a dispute arises over an unauthorized signature. Demonstrating that the company practiced dual control custody helps prove that a disputed transaction was executed without corporate consent.