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 ?
"Professional corporations have similar characteristics of a partnership or close corporation and their growth in members due to their success as an organization should not change the fact that all the shareholders are employed by the business and share in the profits equally [and] owe a duty to one another, which they should," Flavin said.
Many courts struggled with allowing such informality and departures from the prescribed statutory model in the absence of such a special subchapter dealing with close corporations. (72) A close corporation chapter was added to the American Bar Association's Model Business Corporation Act in 1984.
(108.) For instance, to qualify as a close corporation in Ohio,
The paper argues that, aside from the particular context of minority shareholders in close corporations, they would not and, therefore, such an overarching default rule in corporate law is inefficient.
For example, contract-like construction of the "bargained-for" relationship appears in the case law of close corporation law.
Christina's business, a close corporation, currently employs three full-time staff members and three casual workers.
(7.) Approximately twenty states and also the District of Columbia have statutes that provide for the "close corporation" form.
Cavex will continue to create and produce new products in close corporation with its valued customers.
[W]e hold that stockholders in the close corporation owe one
Gum Technology, an Arizona close corporation, is a gum and hydrocolloids blending, services and distribution company.
The Asian Tribune has been appraised by reliable sources that the Indo-US close corporation on issues since the May 2009 internal defeat of the Tamil Tigers such as accountability to incidents that involved the military during the final months of the battle to defeat the separatists, alleged violation of IHL and IHRL, civilian deaths, and reconciliation was cemented due to the 'China Factor', and now the reports reaching Delhi and Washington of imminent Chinese military presence in the Island of Katchatheevu.
structure of the problem is clear: in a close corporation, there are