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 ?
72) A close corporation chapter was added to the American Bar Association's Model Business Corporation Act in 1984.
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.
The frequent resort in the close corporation setting to protecting "reasonable expectations" of shareholders (36) falls short of reducing the corporation to a web of contracts.
close corporations must discharge their management and stockholder
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
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.
by a close corporation may also depend upon the enforcement of share
173) As a result, the same problems found in the close corporation later surfaced in the LLC context.
A great example off a new product development is DST-DEGREEZ/13 which was developed in close corporation with the Bodycote hardening plant in Venlo, the Netherlands.
The Statutory Close Corporation Supplement to the MBCA, a model law that governed close corporations, was discontinued by the Committee on Corporate Laws upon the publication of the fourth edition of the MBCA.