close company


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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.

close company

a JOINT-STOCK COMPANY which is under the control of five or fewer larger SHAREHOLDERS or directors.
References in periodicals archive ?
In the 125cc race, Robert Dunlop took the lead on the first lap with Chris Palmer and Ian Lougher in close company.
The junior up to 200cc event saw three wins for Barrie Gale (Yamaha 125) with Steve Hetherington (KTM 125) and David Wilkinson always in very close company.
Derek Knight's exciting prospect, providing the third leg of a seven-timer for the Albourne maestro, took over from Lenson Cody at the second corner with favourite Blues Best Tayla (6-4) in close company as the field raced past the judge on the first circuit.
Government proposals to close company tax loopholes have been broadly welcomed by corporate accountants, although some warned of dangerous uncertainties in the process.
It is wedged up against a fence in a side yard and keeps close company with a billowy, vining star jasmine.
The couple also spent Valentine's Day in different countries, as Seal worked on 'The Voice' in Australia while Klum, 38, kept close company with her friends in Los Angeles at the Soho House.
The Curriers Close company was founded by Brian Chadbourn more than 30 years ago and remains a family firm, with Shawn Chadbourn as operations director and Sarah McDade as development director.
Nearly Gold kept in reasonably close company with the pacemaking winner until losing momentum with a shocking blunder at the fourth-last.
It's a small world: Art, architecture and miniature modeling are keeping close company these days in greater Los Angeles.
Their dogs never accidentally mess the waiting-room floor and will tolerate the close company of any other type of animal while lying quietly at their owner's feet.
The Broxall Close company has a turnover of between pounds 70 million and pounds 100million a year and employs 190 people.
When the pair split on the turn, after having run in close company for much of the way-Red Bullet going inside and Fusaichi Pegasus staying outside-it was Red Bullet who was travelling much the better.