What is often a key advantage of a statutory close corporation?

A statutory close corporation is designed specifically to address the needs of a smaller group of shareholders and often operates with fewer regulatory requirements than other corporate forms. One of the key advantages of such a corporation is indeed the easier management that arises from having fewer shareholders.

With fewer shareholders, decision-making processes can become quicker and simpler since there are less divergent interests to reconcile. Shareholders in a close corporation typically have a direct say in management and operations, often leading to more streamlined and cohesive governance structures. This allows for more flexibility in management decisions and can enhance efficiency, as decisions can be made without the need for extensive formalities typically required in larger corporations.

In contrast, raising unlimited capital tends to be a characteristic of larger public corporations due to their ability to issue stock to the general public. Regulatory oversight is generally greater for corporations that are publicly traded or large in scale. Lastly, greater public exposure is also something that larger corporations experience as they engage with the public markets, which is not the case with statutory close corporations that remain private and closely held. Therefore, the advantages of a statutory close corporation predominantly align with the flexibility and ease of management facilitated by its smaller, more closely-knit shareholder base.