close company
A company effectively controlled by not more than five shareholders.

Easyform Glossary of Law Terms. — UK law terms.


close company
a UK resident company that is controlled by five or fewer participators, by participators who are directors or by five or fewer persons to whom over 50 per cent of the assets could be distributed on a notional winding up. The consequences of close company status are now that for corporation tax purposes a wider definition of distribution (e.g. loans to directors) applies. Until the Finance Act 1989 such companies were required to make distributions up to 'the required standard', with any shortfall being treated as having been distributed and, as such, taxable as if it were income in the hands of the shareholders.

Collins dictionary of law. . 2001.


close company
Generally a UK resident company controlled by five or fewer participators or any number of participators who are directors. Participators include shareholders and a wide-ranging category of persons with other interests in the company, such as loan creditors, and their respective associates. Many private companies (private company) are therefore close companies. Close companies are subject to special tax rules.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • close company — ➔ company * * * close company UK US noun [C] FINANCE, STOCK MARKET ► CLOSED COMPANY(Cf. ↑closed company) ► CLOSELY HELD COMPANY( …   Financial and business terms

  • close company — or closed company (U.K.) Gen Mgt a company in which five or fewer people control more than half the voting shares, or in which such control is exercised by any number of people who are also directors …   The ultimate business dictionary

  • close company — noun A firm controlled by five, or fewer, people who own a majority of the shares • • • Main Entry: ↑close …   Useful english dictionary

  • close company — A company resident in the UK that is under the control of five or fewer participators or any number of participators who are also directors. There is also an alternative asset based test, which applies if five or fewer participators, or any… …   Big dictionary of business and management

  • close company — A company resident in the UK that is under the control of five or fewer participators or any number of participators who are also directors. There is also an alternative asset based test, which applies if five or fewer participators, or any… …   Accounting dictionary

  • close company — /ˌkləυs kʌmp(ə)ni/ noun a privately owned company controlled by a few shareholders (in the UK, less than five) where the public may own a small number of the shares (NOTE: The US term is close corporation or closed corporation.) …   Dictionary of banking and finance

  • company — a business owned by a group of people called shareholders, which has its own legal identity separate from its owners. Glossary of Business Terms A proprietorship, partnership, corporation, or other form of enterprise that engages in business.… …   Financial and business terms

  • close investment holding company — A close company that does not exist wholly or mainly as a trading company, a property company letting to third parties, or a holding company of a trading company …   Accounting dictionary

  • close investment holding company — A close company that does not exist wholly or mainly as a trading company, a property company letting to third parties, or a holding company of a trading company …   Big dictionary of business and management

  • Close Brothers Group — plc Type Public (LSE: CBG) Industry Banking …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.