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Publications Elimination of seals: implications and prospects

Abolition of Seals in Ukraine 2017. Abolition of Seals for Legal Entities

First of all, it should be noted that the de facto abolition of the mandatory use of seals by entrepreneurs for economic activity took place in 2014, according to the Law of Ukraine 1206-VII of 15.04.2014.

However, most businessmen and officials did not take the provisions of the Act seriously because it was more declarative than mandatory in specific fields of activity. Many businessmen and "old-fashioned" officials did not understand how to dispense with printing, because the document would then have no legal effect. However, this is not the case, the seal is quite easy to forge. At the same time, fraudsters with the skills to forge seals can become true kings of life.

There are many ways to protect a written document from forgery, including through the use of digital signatures and other computer technologies. Forging a document using electronic security is much more difficult and problematic than forging a simple seal. It was therefore necessary for the legislator to go further and to give the provisions of the Act as much specificity as possible by means of a new piece of legislation.

On 19 July 2017, the Law of Ukraine 1982 VIII "On Amendments to Certain Legislative Acts concerning the Use of Seals by Legal Persons and Natural Persons-Entrepreneurs" entered into force.

The fundamental novelty of the Act is the amendment of article 58-1 of the Code of Economic Affairs. The new version of the article reads as follows: The business is entitled to use the press in its activities. The use of a seal by an enterprise is not mandatory. The printing of a seal may not be a mandatory feature of any document submitted by a business entity to a State or local government body. A copy of the document, which is submitted by the economic unit to a State or local government body, is deemed to be certified in accordance with the established procedure, If such a copy bears the signature of the authorized person of such economic unit or the personal signature of the natural person - the entrepreneur. The presence or absence of the stamp of the economic unit on the document does not produce legal effects.

In addition, article 166-24 of the Code of Administrative Offences establishes the administrative liability of officials of State and local government bodies for refusing to accept any documents from entrepreneurs, without a stamp.

According to Law 1982 VIII, in the power of attorney on behalf of legal persons or natural persons-entrepreneurs it is not necessary to have a seal, the signature of the authorized person of legal person or natural person-entrepreneur is sufficient.

Of course, to date, the use of seals in documentary relations is the easiest and cheapest way to protect documents. No one will prohibit businessmen from using seals in economic activities, but the simplification of the procedure for the production and sale of seals, which is also provided for in the Act, should lead many to think, that the probability of fabricating false seals will increase many times. Let us hope that entrepreneurs will consider using other means, including electronic means, to protect their documents from forgery.

 
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