Define: Close Corporations

Business, Legal & Accounting Glossary

Definition: Close Corporations



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Full Definition of Close Corporations


A close corporation is a corporation that possesses the following traits: a small number of shareholders; no ready market for the corporation’s stock; and substantial participation by the majority shareholders in the management of the corporation. Some states have close corporation statutes. This kind of corporation typically has 30 to 50 stockholders and is a good match for businesses in which the majority of stockholders is actively involved in the management of the company.


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Close Corporations. PayrollHeaven.com. Retrieved April 08, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/close-corporations/

Definition Sources


Definitions for Close Corporations are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 25th March, 2020