closed corporation

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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 ?
The choice between an LLC and a statutory closed corporation is a closer call.
During the month under review, a major increase in company registrations was witnessed, both for closed corporations (up 21% month on month) and defensive names (up over 100% month on month).
It was mentioned, that Kyrgyzstan may loose its sovereignty because of closed corporations activities.
The Ministry of Lands will never know that the closed corporations have changed ownership and therefore the land is owned by another person, as there is no exchange of such information between the Ministry of Trade and Industry and the Ministry of Lands and Resettlement.
Kamwi relied on his constitutional right to "practice any profession" through the vehicle of closed corporations.