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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 ?
Malta closed company law, EMU, statistics, culture and audiovisual policy, and consumers and health protection; free movement of capital, competition policy, fisheries and social policy and employment remain under discussion.
MANAMA: The Finance Ministry has finalised the legal and administrative procedures of registering Bahrain Bourse as a Bahraini shareholding closed company with an authorised capital of BD10 million ($26.
50 per hour at a recently closed company calculated that with all the benefits he was receiving now unemployed, he needed to earn pounds 8 per hour to make employment worthwhile.
Slovenia closed company law, and "almost closed" the Customs Union, said its negotiator, Janez Potocnik.
According to the report, company also wants to up the volume of trade when they acquire TRC and could create over 2,000 jobs, against about 1,000 by the closed company.
Following the approval from the CBB, the BFX has set up the BFX Clearing and Depository Corporation (BCDC) as a BSC closed company.