Closed Corporation

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Related to Close Corporations: closely held corporation

Closed Corporation

A type of business corporation that is owned and operated by a small group of people.

A closed corporation is also known as a close corporation, a family corporation, an incorporated partnership, and a chartered partnership. In this type of corporation all of the functions are usually performed by the same parties. These individuals serve as shareholders, officers, and directors and are involved in the management and operation of the business. A closed corporation differs from a publicly held corporation since its stock is neither issued nor traded to the public at large.

References in periodicals archive ?
Statutory requirements to qualify as a close corporation vary from state to state.
Because it is uncommon for a corporation to statutorily elect to become a close corporation, this article will not analyze or discuss these state statutes.
Although many close corporations are small, not all are.
But only a very small percentage of Delaware corporations actually become statutory close corporations because the form offers few advantages not obtainable under the general corporation law.
First, despite the ruling in Tillis, to date Florida courts have been seemingly reluctant to follow the view that close corporations are analogous to partnerships.
48) Unlike Massachusetts, Delaware has been deemed an adherent of the minority view held in the United States; a view that rejects the approach that courts should "fashion a special judicially-created rule" for minority investors or shareholders or that close corporations should be treated differently.
Martha Ertman's work relating marriage law to the law on close corporations offers an important example of such comparative studies.
The previous discussion suggests little reason to expect promulgation of close corporation statutes, much less the evolution of efficient close corporation statutes.
If someone approached you at a cocktail party and asked you to explain the differences between a corporation, a close corporation, and a professional service corporation, could you do it?
The company offers services such as the registration of companies and close corporations, selling of shelf companies and close corporations, the maintenance of statutory records and submission of documents to the Registrar of Companies in compliance with the Companies Act and the training of personnel on company secretarial compliance services.
That a professional who resigns from the corporation could well be left in the unfortunate position of owning unmarketable shares of stock is generally true of the minority shareholders in all close corporations.