Closed corporation

A closed corporation is a company whose outstanding shares are held by a small number of investors. These investors are usually the managers of the company, as well as immediate family members. When an investor dies, his or her shares are purchased by the surviving shareholders. Given the small number of owners and their presumed unwillingness to sell their shares, the general public is unable to invest in this type of business. Most companies are considered closed corporations.

Related Courses

Choice of Entity