CTM60060 | Close companies: general: broad definition

Subject to certain exceptions, a close company is broadly a company:

• which is under the control of:

  • five or fewer participators, see CTM60107, or

  • any number of participators if those participators are directors, or

• more than half the assets of which would be distributed to five or fewer participators, or to participators who are directors, in the event of the winding up of the company, see CTM60320.

See CTM60100 onwards as regards the detailed tests to determine whether a company is a close company.

Note that in the guidance on close companies the non-statutory term 'open company' refers to a company which is not a close company.