close corporation

A close corporation is a corporation which is held by a limited number of shareholders and is not publicly traded. A close corporation can generally be run directly by the shareholders (without a formal board of directors and without a formal annual meeting), and is exempt from a number of the formal rules which usually govern corporations.

A close corporation is also commonly referred to as a closely held corporation.

[Last reviewed in July of 2022 by the Wex Definitions Team]

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