TeachMeFinance.com - explain Close corporation
Close corporation -- Name given to an incorporated company
the stock of which is held by a few persons and is not
for sale. When a private business is continued as an incorporated
company instead of a partnership and stock is allotted
to each partner for his interest or share in the business
the company is called a close corporation. An entirely new
business or enterprise, however, may be and often is started
as a close corporation instead of a partnership. Usually there
is an agreement among the stockholders whereby each is prohibited
from disposing of or transferring his stock without the
consent of the others.
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