Michale Spadaccini in “What is a Close Corporation?” explains pros and cons of incorporating a Close Corporation: “A close corporation is generally a smaller corporation that elects close corporation status and is therefore entitled to operate without the strict formalities normally required in the operation of standard corporations.
Close corporations enjoy relaxed rules with respect to the formalities of governance. For example, close corporation shareholders typically need not hold formal annual meetings. Close corporation shareholders may override the directors and act on their own–thereby usurping an authority typically lodged with the directors. Read more.”« Return to all articles