Close Corporation Agreement

 Agreement of Shareholders of a Close Corporation with Management by Shareholders
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State:
Multi-State
Control #:
US-0178BG
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Description

A close corporation is a corporation that is exempt from a number of the formal rules usually governing corporations, because of the small number of shareholders it has. The specifics vary by state, but usually a close corporation must not be publicly traded, and must have fewer than a set number of shareholders (usually 35 or so). A close corporation can generally be run directly by the shareholders (without a formal board of directors and without a formal annual meeting).

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