close corporation


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close corporation

n. a corporation which is permitted by state law to operate more informally than most corporations (allowing decisions without meetings of the Board of Directors) and has only a limited number of shareholders. Usually a close corporation's shareholders are involved in the actual operation of the business and often are family members. (See: corporation)

References in periodicals archive ?
The court further stated that whether in the setting of a close corporation or a P.
Late last week, Human Capital Fishing suddenly found itself in the limelight after a flurry of lawyer's letter between various members of the Close Corporation.
Statutory requirements to qualify as a close corporation vary from state to state.
Asked whether the close corporation between the AL and the Khartoum government on the issue of Darfur is tantamount to the League's support for Al-Bashir, Moussa insisted that the League cooperates with the entire political spectrum in Sudan.
The statutory close corporation possesses the prototypical corporate attribute of limited liability but reduces the formalities inherent in the traditional corporate statutes.
In contrast, in the intimate environment of the close corporation, independence means something very different than it does in the harsh spotlight of the public corporation.
15) The court agreed with the minority stockholder and, noting the distinguishing characteristics of closely held corporations, held that the stockholders in a close corporation owed each other the same fiduciary duty as is owed by one partner to another in a partnership.
952 Court proceeding by shareholder in close corporation.
According to the IRS, "the cumulative effect of the retained powers and the rights flowing from the shares not placed in trust leaves the grantor in control of a close corporation and assures control for his lifetime.
The nine are: Canac of Canada; Optima Management Services Ltd of the UK; Danish-Kenyan joint venture Maersk Kenya Ltd; China Railway First Group Company Ltd; Indian firm RITES Ltd; Holtrade GmbH of Germany; NLPI Private Ltd of Mauritius; Anglo-Kenyan firm Magadi Soda Company Ltd; and Sheltam Trade Close Corporation of South Africa.
138) The close corporation context, in which personal emoluments such as employment form a significant part of the return on investment and in which ownership shares are relatively illiquid, leaves the minority at heightened risk of exploitation.