Business ENewsletter April 01 2010

Closely Held Businesses
As entrepreneurship expands, closely held businesses comprise an increasing proportion of the business community. Closely held businesses (or close corporations) are companies with few shareholders. Since there are so few shareholders, the principal holders usually manage the company. As a result, closely held businesses experience special management challenges because of the closer relationship among the shareholders. Some states have developed procedures to facilitate resolution of disputes in closely held businesses.