closed corporation

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Related to Closely-Held Companies: closely held corporation, Privately held companies

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 ?
Even though the new standard sets forth a disclosure set for publicly traded companies and a separate, reduced disclosure set for closely-held companies, these smaller companies may provide the more detailed disclosures of publicly traded companies if they so desire.
For more than 80 years, Cole Taylor Bank meets the banking needs of closely-held companies and the people who own and manage them.
The volume focuses on such topics as: negotiating an executive compensation package; designing incentive and equity-based plans and programs; financing for nonqualified plans; transactions and entities requiring special consideration such as mergers and acquisitions, tax exempt employers and closely-held companies; arbitration; settlement; and, litigation, including techniques for representing the company that is hiring or terminating an executive, or for representing the hired/fired executive.
The firm represents more than 800 clients from all industries in 35 states, from major employers with thousands of employees to smaller, closely-held companies. Because of Swerdlin's independence, advice given to clients is always objective and never influenced by financial gain.