What is a corporation with a very small number of shareholders called?

A corporation with a very small number of shareholders is called a closed corporation. This type of corporation is characterized by the limited number of shareholders, which restricts the transferability of shares. Typically, the shareholders are closely involved in the management of the company and often have personal relationships with one another. This structure allows for a greater degree of control and privacy when it comes to business operations and financial reporting.

In a closed corporation, shares are not offered to the general public as they would be in an open corporation, thus maintaining tighter control over ownership and management. This distinguishes closed corporations from others that may have a broader base of shareholders, leading to different regulatory and operational guidelines.

The other types of corporations, such as private corporations and joint-stock corporations, have distinct characteristics: private corporations can have a larger number of shareholders and may be open to certain public or private investments; joint-stock corporations are structured to allow shares to be sold or traded publicly, which is not the case in a closed corporation. Understanding these distinctions is essential for recognizing the specific framework and legal implications surrounding different types of corporate governance.