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good afternoon im catherine taylor the lawyer for business owners have you ever heard somebody say that they own a close corporation thats spelled c-l-o-s-e if you have you might you might have wondered what that means well what that means is that the owners of the company have opted for a less formal way of running their business a close corporation is sometimes referred to as a closed corporation but basically what it means is that the shareholders of the business have elected to have no board of directors so typically in a corporation in a regular corporation the shareholders who are the owners will elect board members who are really the people who run the business on a day-to-day basis many times through the appointment of officers with a closed corporation the shareholders basically say we dont want that middle man level or middle woman level we want to run the business directly ourselves so in order to do that they have to make a formal election and that election has to be fi
