Close Corporation

Close Corporation in United States

Practical Information

Note: Some of this information was last updated in 1982

Also called Closed Corporation. A corporate enterprise whose capital stock is held by a limited group; its shares are ordinarily not sold in the securities markets. A close relationship between ownership and management is an identifying characteristic as well as a main objective. Usually a close corporation is small. (The Ford Motor Company was an exception.) Theoretically, there is no difference between meetings of stockholders or boards of directors of great enterprises and those of close corporations (See director’s meetings (in U.S. law)). Statutes and judicial decisions spell out the meticulous care that must be taken in fulfilling technical requirements. In practice, however, it is a recognized fact that a corporation (in U.S. law) having relatively few stockholders holds meetings without extensive advance preparation.

(Revised by Ann De Vries)

What is Close Corporation?

For a meaning of it, read Close Corporation in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Close Corporation.


Posted

in

, ,

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *