Closed Corporation (Noun)
Meaning
A corporation owned by a few people; shares have no public market.
Classification
Nouns denoting groupings of people or objects.
Examples
- The family-owned business was a closed corporation, with all major decisions made by the founding members and their heirs.
- A closed corporation typically has a limited number of shareholders, who are often also the company's officers and directors.
- In a closed corporation, ownership is not transferred publicly, and the transfer of shares is strictly regulated.
- The closed corporation was owned by a small group of investors, who maintained tight control over the company's operations and finances.
- As a closed corporation, the company was not required to disclose its financial information to the public or adhere to the same regulations as publicly traded companies.