Under what condition are closed meetings permitted according to the provided text?

Closed meetings are permitted when the subject pertains to future litigation or rulemaking. This context is crucial because discussions about potential legal actions or regulatory frameworks often involve sensitive information that could harm an organization or individuals if disclosed prematurely. Such discussions might include legal strategies, the evaluation of risks, or compliance issues that require confidentiality to protect the interests of the parties involved.

In contrast, the other scenarios typically involve matters that can be publicly disclosed or discussed. Financial audits, public comment sessions, and negotiations with suppliers generally don't involve the same level of confidentiality, making open meetings the appropriate format for those discussions. Thus, the stipulation regarding closed meetings based on the potential for litigation or rulemaking ensures that necessary confidentiality can be maintained.