Close corporations.

Existing law, the General Corporation Law, defines different types of business entities and corporations and prescribes their powers and duties. Existing law defines a close corporation as a corporation the articles of which contain, in addition to other things, a provision requiring that all of the corporation's issued shares of all classes be held of record by a specified number of people, not to exceed 35. This bill would raise the maximum number of people who can hold shares in a close corporation, as described above, to 40.