Michael McDowell (Dublin South East, Progressive Democrats)

Section 62 is intended to modify substantially the formalities for the correct execution of deeds. Subsection (1) abolishes the need for a seal in the case of execution by an individual, but a seal will remain necessary for corporations. It also abolishes the rule that authority given to another person to deliver a deed must itself be given by deed. This has already been done in regard to powers of attorney under section 15 of the 1996 Act.

Subsection (2) sets out the new requirements for deeds following the abolition of the need for sealing by individuals. Subsection (2)(a) provides for identification of a document as a deed by giving it an appropriate heading or otherwise making it clear on its face that it is intended to be a deed, or by expressing it to be executed or signed as a deed. This is one of the aspects of the new arrangements to differentiate between a deed and a letter of intent or similar.

Paragraph (b) sets out the different methods of execution depending on the status of the person or body executing the deed. Subparagraph (i) makes it clear that while individuals are no longer required to use a seal, it remains open to them to do so if they wish. Subparagraphs (ii) and (iii) preserve the existing law relating to corporations.

The Senators asked what is involved in a seal and whether, under these provisions, a deed that is signed and sealed by the individual must also be witnessed. This is a good question and I do not have an immediate answer. I will consult the expert group on this because I do not want to mislead the House.

Senator Tuffy asked about the meaning of subparagraph (i)(III), which specifies that the deed can be "acknowledged by the individual in the presence of a witness who attests the signature". Is the Senator asking whether it is necessary for the witness to be present when the signature is made or whether one can witness a deed without seeing it being signed?