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 ?
Delaware's provisions were optional: an eligible company had to opt into them by filing with the Secretary of State as a close corporation covered by the statute.
Aside from the particular context of minority shareholders in close corporations, we argue that they would not and, therefore, such an overarching default rule in corporate law is inefficient.
Thompson, Close Corporations and LLCs: Law and Practice [section] 1.29 (rev.
He said : "Close corporations are not seen as secure investments."
structure of the problem is clear: in a close corporation, there are
As long as close corporations populate themselves with family and friends as their owners, their dissolutions will remain bitter legal contests.
restrictions3 in the corporate documents (4) of close corporations (5)
Even before the problem of minority member oppression was confronted by the courts, commentators had recognized that the same oppressive conduct of majority shareholders in close corporations was likely to be seen in LLCs.
Shareholders in close corporations have often invested "a substantial percentage" of their assets in the corporation ...
Shareholders of close corporations, either small, family-owned or big in assets and structure, ordinarily enter into different kinds of agreements to regulate the most important relations of the corporations (5).
Close corporations forge delicate equilibria that balance who will sit on the board, and which directors and which shareholders must approve certain actions, and who will receive a salary.
1964) (defining closely held corporations as those with few stockholders and limited market for shares); EISENBERG, supra note 19, at 246 (describing modern close corporations as distinct subset of private corporations); see also Diane L.