Close corporation. Name given to an incorporated company the stock of which is held by a few
persons and is not for sale. When a private business is continued as an incorporated company
instead of a partnership and stock is allotted to each partner for his interest or share in the
business the company is called a close corporation. An entirely new business or enterprise,
however, may be and often is started as a close corporation instead of a partnership. Usually
there is an agreement among the stockholders whereby each is prohibited from disposing of or
transferring his stock without the consent of the others.  What in the United States is known as a
close corporation is in Great Britain termed a private company.