Definition of Closed corporation:
Close corporationPrivately held companyPrivate companyFamily corporationIncorporated partnership.
A closed corporation is a company whose shares are held by a select few individuals who are usually closely associated with the business. Such a corporate business structure is known by a variety of other names, including the following:.
Firm whose all issued shares are held by a family or a small group of investors and, therefore, cannot be bought by the public. Also called privately held corporation. See also closely held corporation.
How to use Closed corporation in a sentence?
- With fewer shareholders involved and shares not publicly traded, liquidity can be an issue for closed corporations.
- Closed corporations are companies whose shares are held by a small group of entities or individuals closely associated with the company.
- Closed corporations have more flexibility compared to publicly traded companies as they are free from most reporting requirements and shareholder pressure.
- Closed corporations are also known as privately held companies, family corporations, or incorporated partnerships, among other names.
- These companies are not publicly traded and the general public cannot invest in them; most shares are held by managers, owners, and even families.
Meaning of Closed corporation & Closed corporation Definition