- close company
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A company effectively controlled by not more than five shareholders.
Easyform Glossary of Law Terms. — UK law terms.
- close company
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a UK resident company that is controlled by five or fewer participators, by participators who are directors or by five or fewer persons to whom over 50 per cent of the assets could be distributed on a notional winding up. The consequences of close company status are now that for corporation tax purposes a wider definition of distribution (e.g. loans to directors) applies. Until the Finance Act 1989 such companies were required to make distributions up to 'the required standard', with any shortfall being treated as having been distributed and, as such, taxable as if it were income in the hands of the shareholders.
Collins dictionary of law. W. J. Stewart. 2001.
- close company
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Generally a UK resident company controlled by five or fewer participators or any number of participators who are directors. Participators include shareholders and a wide-ranging category of persons with other interests in the company, such as loan creditors, and their respective associates. Many private companies (private company) are therefore close companies. Close companies are subject to special tax rules.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
