closed corporation

(redirected from Closely-Held Corporation)
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Related to Closely-Held Corporation: privately held corporation, S corporation

Closed corporation

A corporation whose shares are owned by just a few people, having no public market.

Closed Corporation

A company in which a small group of shareholders controls the majority of the shares. These majority shareholders tend to hold on to the company's stock, and, for that reason, only minority shares are traded, leading to light trade volume. Closed corporations are, by their nature, resistant to hostile takeovers and proxy wars. They tend to be more stable than other companies because their share prices are not determined by (sometimes irrational) investment decisions, but by the value of the company itself. However, closed corporations do not have access to as much working capital as corporations with more shareholders. They are also called closely held companies.

closed corporation

References in periodicals archive ?
Alternative Structures for the Sale of a Closely-Held Corporation
The court clearly recognized that closely-held corporations enjoy religious liberty rights just as they enjoy rights to free speech.
In addition, Lee has extensive experience with closely-held corporations, international taxation and pass-through entities.
He moved to Oregon in 1969 and has counseled a number of leading Oregon utilities and publicly-traded corporations, as well as dozens of closely-held corporations in real estate, timber, and electronics.