CLOSE COMPANY Meaning and
Definition
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A close company is a term used in corporate law and taxation to categorize a specific type of company. It refers to a privately-held company where the majority of the shares or voting rights are held by a limited number of individuals, typically family members or close associates. In such a company, the shares are not publicly traded on a stock exchange, making them closely controlled and limited in their transferability.
Close companies are often characterized by a close-knit ownership structure and a high degree of influence and control by the shareholders, who are usually involved in the day-to-day management of the company. This type of company structure often fosters a strong personal or familial connection among the shareholders, allowing for quick decision-making and agility in responding to market changes.
From a taxation perspective, close companies may be subject to different rules and regulations compared to public companies. This can include specific tax provisions and reliefs available to shareholders, as well as limitations on certain tax advantages, such as restrictions on the use of certain tax reliefs or allowances.
The concept of a close company aims to distinguish smaller, privately-held entities from publicly traded corporations by recognizing the distinct characteristics and requirements of these types of organizations.
Common Misspellings for CLOSE COMPANY
- xlose company
- vlose company
- flose company
- dlose company
- ckose company
- cpose company
- coose company
- clise company
- clkse company
- cllse company
- clpse company
- cl0se company
- cl9se company
- cloae company
- cloze company
- cloxe company
- clode company
- cloee company
- clowe company
- closw company
Etymology of CLOSE COMPANY
The phrase "close company" does not have a specific etymology. However, the individual words that make up the phrase have their own origins:
1. Close: The word "close" originated from the Old French word "clos", which means "enclosed" or "shut". It evolved from the Latin word "clausus", meaning "closed" or "shut in".
2. Company: The word "company" comes from the Old French word "compagnie", which derives from the Late Latin word "compania". This Latin word is a combination of "com", meaning "with", and "panis", meaning "bread". The original sense referred to a group of people who ate together, and it later broadened to mean a group of individuals who associate together.
When combined, the phrase "close company" does not carry a specific etymological meaning different from the individual words.
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