Closed Corporation

Closed Corporation - A closed corporation is a private corporation that is entitled to operate without the strict formalities required when operating a standard corporation. This is usually a small business or company in which all the voting stock is held by only a few selected shareholders, and operates more like a partnership, than a true corporation operates. Generally, the shareholders consist of friends and family members. These closed corporations are referred to, as private companies. Usually these companies are still publicly traded, although the shares are not available for sale to the public, so these corporations are known to be very thinly traded.