closely held (close) corporation
A corporation with few shareholders and no public market for its stock, where owners usually also manage; some states offer a statutory close corporation run under a shareholders' agreement instead of board formalities, now rarely used because LLCs are more flexible.
In SpanishEn español
sociedad cerrada (close corporation)
Pocos accionistas, sin mercado para las acciones, dueños que también administran. Algunos estados tienen un régimen legal especial regido por un convenio de accionistas; hoy casi no se usa porque la LLC da la misma flexibilidad. Muchos tribunales tratan a sus socios casi como partners, con deberes recíprocos.
ExamplesEjemplos
- A family-owned chain of car washes is a close corporation. Una cadena familiar de autolavados es una close corporation.
AuthorityFuente: TBOC ch. 21, subch. O
RelatedRelacionados: corporation, shareholder (or partner) agreement, shareholder oppression
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