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LEGISLATIVE RECOGNITION OF THE CLOSE CORPORATION

Abstract

The importance of the corporate form and the notion of limited liability which has in modern times been a concomitant of it, as a stimulus to industrial enterprise, is universally recognized. It is only natural therefore to seek to extend the advantages of this form to all kinds of enterprise and with the minimum of restrictions. With this in mind the courts have sanctioned the two-man and the one-man corporation although the statutes in strictness called for three or more. With this in mind the legislatures have gradually abolished one impediment after another which lay in the path of incorporators.

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