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Closed Corporation
(redirected from Closed 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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A public company is traded on a stock exchange, and is owned by stockholders instead of individual people In certain public companies, called closed corporations, only a few people hold all the stock, and in this case, the company may resemble a partnership more than a corporation A public company is traded on a stock exchange, and is owned by stockholders instead of individual people.
Articles of closed corporations typically restrict the conditions under which shares are transferable.
 
 
 
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