- close corporation
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close corporation see corporation
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- close corporation
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A corporation owned and operated by a few individuals, often members of the same family, rather than by public shareholders. Close corporations are regulated by state close corporation statutes, which usually limit the number of shareholders to 30 or 35 shareholders and require special language in the articles of corporation. In exchange for following these requirements, state law usually permits close corporations to function more informally than regular corporations. For example, shareholders can make decisions without holding meetings of the board of directors and can fill vacancies on the board without a formal vote of the shareholders. Compare: closely held corporationCategory: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- close corporation
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USAA company owned and operated by a small number of stockholders and whose shares are not publicly traded. This term can also be used to refer to a statutory close corporation. However, a statutory close corporation is a distinct entity established by state statute that must satisfy a specific set of conditions.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
- close corporation
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n.a corporation which is permitted by state law to operate more informally than most corporations (allowing decisions without meetings of the board of directors) and has only a limited number of shareholders. Usually a close corporation's shareholders are involved in the actual operation of the business and often are family members.See also: corporation
Law dictionary. EdwART. 2013.