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 ?
Under a closed corporation, the articles need to specify whether or not a board of directors will be used or abolished.
'If sued for negligence and other wrongful acts not amounting to a crime, all shareholders and directors of closed corporations are exposed to unlimited liability.
The resolution sets a package of procedures that must be adhered to by shareholding and closed corporations with respect of hiking or slashing the capital.
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).
Having gained relatively unfettered access to the NHL's previously unexamined archives for the interwar period, Wong concentrates on the development of hockey as a business, outlining the transition from fraternal, albeit commercialized organizations committed to elite amateur competition, to the closed corporations that organizations such as the National Hockey Association (NHA), the Pacific Coast Hockey Association (PSHA), and the NHL eventually became.
It was mentioned, that Kyrgyzstan may loose its sovereignty because of closed corporations activities.