closed corporation

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Related to closely-held: Closely held company

Closed corporation

A corporation whose shares are owned by just a few people, having no public market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

closed corporation

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
He divides his time between commercial audit work, the real estate industry and performing tax and accounting services for closely-held businesses.
She provides accounting and consulting services to not-for-profit organizations and trusts, closely-held businesses and real estate entities such as assisted living facilities, nursing homes, HUD projects, low-income housing tax credit projects and CIRAs.
A member of the firm since 2001, he works with closely-held businesses and their owners, not-for-profit organizations and common interest realty associations to provide them with a number of services including audits, compilations, forecasting and agreed-upon procedures.
However, all these disclosures are an integral part of the presentation required for closely-held companies and would be intermingled in one footnote.
With SFAS 132, the FASB recognized that the needs differ between the financial statement users of publicly traded companies and closely-held companies.
In "Discounting Minority Stock Interests in Closely-Held Corporations: When and How Much?"(10) Andrew M.
Milton Gelman, "An Economist-Financial Analyst's Approach to Valuing Stock of a Closely-Held Company," The Journal of Taxation (June 1972): 353-354.
Michael Maher, "Discounts for Lack of Marketability for Closely-Held Business Interests," Taxes--The Tax Magazine (September 1976): 562-571.
Certainly, if the business owners ask the business appraiser to advise them regarding the net proceeds to expect from the sale of their closely-held corporation, then consideration of the alternative tax forms of corporation sale is essential to the valuation analysis.
Alternative Structures for the Sale of a Closely-Held Corporation
This tax structure clearly contrasts with the sale of assets where the seller corporation is taxed on the business sale and the closely-held corporation shareholder is also taxed on the distribution of the business sale proceeds.
In response to the Administration's belief that certain closely-held structures are being used to facilitate corporate tax shelters, the proposals would add a new ownership requirement that would prohibit ownership of more than 50 percent of a REIT's stock by vote or value by any person (not only an individual) other than another REIT.