Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

closely held corporation

Read a random definition: tax-return privilege

A quick definition of closely held corporation:

A closely held corporation is a type of company that is owned by a small group of people, usually family members. The shares of this company are not sold on the stock market. The owners of a closely held corporation have a special duty to be fair and honest with each other. This means they should not do anything that would harm the other owners. Sometimes, the owners of a closely held corporation have rules about how shares can be sold or transferred. If a minority owner feels they have been treated unfairly, they can take legal action against the other owners.

A more thorough explanation:

A closely held corporation is a type of company that is owned by a small group of people, usually family members or close friends. Unlike other corporations, the shares of a closely held corporation are not traded on the stock market. This means that the owners have more control over the company and its decisions.

Because there are only a few owners, the actions of each shareholder can have a big impact on the company. This is why shareholders in a closely held corporation have a special duty to act in good faith and not harm the other shareholders. For example, if a shareholder sells their shares for personal gain, knowing that it will hurt the company and the other shareholders, they could be breaking this duty.

Transferring ownership of a closely held corporation is also different from other companies. The owners often have agreements in place that restrict how and to whom shares can be sold or transferred. This helps keep ownership within the select group of people who started the company or are close to them.

If a minority shareholder in a closely held corporation feels that another shareholder has harmed them or the company, they can file a direct lawsuit against that shareholder. This is different from other corporations, where such lawsuits are usually brought as a shareholder-derivative suit. This exception is made because in closely held corporations, the majority shareholders may unfairly benefit from derivative suits.

For example, imagine a family starts a closely held corporation together. One of the siblings decides to sell their shares to an outsider, even though they know it will hurt the company and the other siblings. The other siblings could file a direct lawsuit against the sibling who sold their shares, claiming that they breached their duty to act in good faith and not harm the other shareholders.

closed-end loan | closing

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
babycat
10:40
t4 is a concept being perpetuated by Big Chicago
soap
10:41
Chicago rejected me in undergrad, so I have beef
shaquilleoatmeal
10:41
Was there an hls ii wave yesterday?? Didn’t go online at all and feel out of the loop lmfao
m10
10:42
@BulbasaurNoLikeCardio: Did not know that but it makes sense. That sounds like a cool career. I would have liked to have done that too. I really would have just liked to have gone OCONUS once.
m10
10:44
I was talking to this 88H in a bar last weekend and he had some wild story about being interrogated by the FBI and CIA and shit to get a top-secret clearance or something so he could drive a forklift around Europe, Korea, and Africa. It sounded like a bunch of bullshit to me but do you know if something like that could be true?
babycat
10:45
@shaquilleoatmeal: yeah so I’ve heard
i don't know any of this military talk but i was going to be a combat medic or trauma surgeon for so long before i went this track lol, so my only exposure is seriously looking and visiting places like west point for recruitment lol. i speak russian so everyone always told me that raises your chances at those places lol
my brother is a combat medic too
BulbasaurNoLikeCardio
10:46
@m10: was a great career, the main job is being a cultural expert building rapport and relationships with foreign nationals, militaries and even people hostile to make the area safer and at times bring in the ODAs or three letter guys to train, arm and fund them to aid in their(our) cause. OCONUS is great but not necessary, I only did two real deployments but a lot of missions to places. That is all 110% BS. I have a TS-SCI, worked with federal agencies they do nothing crazy like that.
shaquilleoatmeal
10:47
Damn - 3rd invite missed smh no love for me from hls
m10
10:49
@jackfrost11770: That's like a huge pitfall. People say it's easy to get into like med school or law school through West Point and it is not at all. Yeah, Russian would make you very valuable to them. You will see West Point people in law school but that's very few compared to how many went through the prelaw program there. Best just to enlist and become a combat medic. I've seen like 4 of em here anyway so you didn't really miss anything by going straight to law school.
BulbasaurNoLikeCardio
10:49
I "speak" Dutch but never used it after training back in 2012. Russian is great if you can get into INTEL but outside of that they would just assign you a lot of NATO roles if you go EUCOM. If you go Jag it may score you a nice job in Europe but at this point with the lack of benefits the military would give you just go state department as an attorney and you will travel the world.
m10
10:50
@BulbasaurNoLikeCardio: Oh yeah, I get that. My buddy just got back from Jordan and he gained like 25 lbs there just being a fat ass doordashing for 50 cents a delivery.
yeah haha i mean i was like 15 so i didn't know anything, and yeah that makes complete sense. my main thing was that i knew i didn't want to go to medical school and i didn't want to straight out enlist so that kinda closed the door on that
glovediedthisishismom
10:50
please listen
m10
10:51
@BulbasaurNoLikeCardio: indeed, it could but I could also just like visit on my own time. Though I have met like 10 or so JAG officers that got an Italian or French or Spanish wife while over in Europe so that is cool.
but i'd love to talk to you about that sometime if that's alright because i've been seriously considering INTEL and other similar roles but i know quite literally nothing about it and don't know where to start researching
m10
10:52
@glovediedthisishismom: oh my god that guy is a psychopath. Tjhat guy scares me.
m10
10:52
@jackfrost11770: Best bet if going law route is Law School to JAG to either Mead or Gordon imo then.
m10
10:53
NSA shit to start. If you can go straight into a GS job then you should go for it.
BulbasaurNoLikeCardio
10:54
@jackfrost11770: I have my undergrad in Intelligence and Terrorism and worked a good bit in the IC so I can answer some broad questions but not many direct because the nature of the field. If you want to go to law school and get your JD it really depends what intel work you would want to do and where you want to live.
thank you!! yeah i also know they always need STEM grads ofc, so i know i have that going for me as well
m10
10:58
Fuck now that Gary Gensler is resigning, this is like a dream job for me. Would love to do securities: https://www.usajobs.gov/job/819640900
m10
10:58
Best job on the wbesite rn.
BulbasaurNoLikeCardio
11:00
If you do it from the attorney side you will be skirting the left and right limits of laws like the NDAA to conduct domestic espionage or how to kidnap or spy on people in foreign countries without committing war/international crimes. JAG would be very very general and location based. At one unit you can be the personal attorney to a commander not even having your own office or desk, next one you can be leading the prosecution of terrorist and rapist and the next one be the legal OK for drone striking people. It is a very varied job you have little control over.
Dkk
11:01
Lmfao, so true.
BulbasaurNoLikeCardio
11:02
The last jag I worked with had a folding picnic table as his desk and had to bring his office chair home every night because people would steal it and he hated using a bucket as a seat. All he did was keep commanders from being fired cause they kept doing illegal shit. It is a varied journey.
Dkk
11:04
This is so true. I still have my folding table. I put alcohol on it now and it is my home bar.
LSD+ is ad-free, with DMs, discounts, case briefs & more.