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Closed Corporation
(redirected from Close Corporations)

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.

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.



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Mitchell, The Death of Fiduciary Duty in Close Corporations, 138 U.
In terms of sheer volume, close corporations dominate the corporate world.
Limited liability companies are comparable to close corporations in the United States, whereas joint stock companies are permitted to have shares that trade publicly.
 
 
 
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