closed corporation

Also found in: Dictionary, Thesaurus, Legal, Acronyms, Wikipedia.
Related to closed corporation: closely held 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 ?
That Sweden, Finland, and the canton of Zurich, areas where the bar was not a closed corporation, saw female physicians before attorneys suggests institutionalization is not a complete answer.
You are sole proprietor, partner or shareholder of a closed corporation and you ask, "What is a buy-sell agreement and why do I need one?
The cabinet also approved, upon a request by the Minister of Transportation, to postpone converting APM Terminals, which is operating the Khalifa bin Salman Seaport, from a closed corporation, to an open one from April, 2014, to late 2014.