Mutualization
Encyclopedia
Mutualization or mutualisation is the process by which a joint stock company
changes legal form to a mutual organization
or a cooperative
. Demutualization
is the reverse process.
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
changes legal form to a mutual organization
Mutual organization
A mutual, mutual organization, or mutual society is an organization based on the principle of mutuality. Unlike a true cooperative, members usually do not contribute to the capital of the company by direct investment, but derive their right to profits and votes through their customer relationship...
or a cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
. Demutualization
Demutualization
Demutualization is the process by which a customer-owned mutual organization or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, members of a mutual usually receive a "windfall" payout, in the form...
is the reverse process.