closed corporation

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Related to closely-held: Closely held company

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 ?
Tax compliance costs are especially high for small and closely-held businesses, and complex rules often prevent them from maximizing their ability to invest and create jobs.
Koransky joined the firm in 1993 and specializes in providing accounting and consulting services to real estate entities, synagogues and closely-held businesses.
Though a closely-held company and not required to conform under SOX, it chose to do so as part of its internal control structure.
In "Discounting Minority Stock Interests in Closely-Held Corporations: When and How Much?
In response to the Administration's belief that certain closely-held structures are being used to facilitate corporate tax shelters, the proposals would add a new ownership requirement that would prohibit ownership of more than 50 percent of a REIT's stock by vote or value by any person (not only an individual) other than another REIT.
To reduce estate taxes, owners of closely-held businesses typically make large stock gifts over a number of years, quickly exhausting the $10,000 annual and $625,000 lifetime tax exclusions, explains Lee S.
Ben Bisconti, Managing Director of Accel-KKR, said, "This transaction further illustrates the power of the Accel-KKR model - Providing partial liquidity for family-owned and closely-held technology businesses, and then working closely in partnership with the owner-operators of these businesses to build significant additional value over time.
Advising companies since 1989, SEG serves the needs of companies ranging from closely-held middle market companies to Fortune 500 companies in industries such as: branded consumer products, software and technology, manufacturing, insurance, transportation and logistics.
Strategic Equity Group, located at 6 Hutton Centre Drive in Orange County's South Coast Metro Area (Santa Ana), was founded in 1989 to serve the advisory needs of companies ranging from closely-held middle market companies to Fortune 500 companies in industries such as healthcare, software and hardware, technology, manufacturing, insurance, and consumer products.
Strategic Equity Group, which recently relocated to 6 Hutton Centre Drive in Orange County's South Coast Metro area, was founded in 1989 to serve the advisory needs of companies ranging from closely-held middle market companies to Fortune 500 companies in industries such as: software and hardware, high technology, manufacturing, insurance and branded consumer products.
was organized in 1989 to provide highly personalized financial services primarily to affluent individuals, professionals, owners of closely-held businesses and commercial real estate investors.
Brouse McDowell serves as legal counsel to Fortune 500 companies, financial institutions, closely-held businesses and individuals.