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Statutory Close Corporation
Practical Law Glossary Item 8-383-4674 (Approx. 2 pages)
Glossary
Statutory Close Corporation
A company established under a specific state statute that must meet certain conditions. For example, for a company to be a close corporation under Delaware law:
- That status must be specifically indicated in the certificate of incorporation of the company.
- The company's shares must be owned by fewer than 30 stockholders.
- The company's shares must be subject to certain restrictions on transfer.
- The company must not engage in any public offering of its shares.