Closed Corporation

Closed Corporation
A business that is set up using a corporate business structure, but in which all the shares are held by a select few individuals who are usually closely associated with the business. Participating in a closed corporation enables a partnership to benefit from liability protection without dramatically changing the way that the business operates.

Closed corporations are not publicly traded on any stock exchanges and are, therefore, closed to investment from the general public. Shares are often held by the owners/managers of the business and sometimes even their families. When a shareholder dies or has a desire to liquidate his or her position, the business or remaining shareholders will buy back the shares.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • closed corporation — A type of business corporation that is owned and operated by a small group of people. Dictionary from West s Encyclopedia of American Law. 2005. closed corporation A type of business corporation tha …   Law dictionary

  • closed corporation — noun a corporation owned by a few people; shares have no public market • Syn: ↑close corporation, ↑private corporation, ↑privately held corporation • Hypernyms: ↑corporation, ↑corp • Hyponyms: ↑ …   Useful english dictionary

  • closed corporation — corporation whose stock is owned by a small number of people …   English contemporary dictionary

  • closed corporation — closed′ corpora′tion n. bus an incorporated business owned by a few individuals who seldom sell their stock and so retain control …   From formal English to slang

  • closed corporation — noun Date: 1924 close corporation …   New Collegiate Dictionary

  • closed corporation — an incorporated business the stock of which is owned by a small group. Also, close corporation. * * * …   Universalium

  • closed corporation — A corporation whose shares are owned by just a few people, having no public market. Bloomberg Financial Dictionary …   Financial and business terms

  • Volkspares Closed Corporation — Rechtsform 1946 bis 2003: Limited seit 2003: Corporation Gründung 1946: Volkswagen SA Spares Corporation …   Deutsch Wikipedia

  • corporation — cor·po·ra·tion /ˌkȯr pə rā shən/ n [Late Latin corporatio, from Latin corporare to form into a body, from corpor corpus body]: an invisible, intangible, artificial creation of the law existing as a voluntary chartered association of individuals… …   Law dictionary

  • closed company — ➔ company * * * closed company UK US noun [C] (also closed corporation, also close company, also close corporation) ► FINANCE, STOCK MARKET a company whose shares are owned by a sm …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”