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KembaraXtra – Legal Terms – Mutual Society
A mutual society is an organization owned by its members rather than by external shareholders.
Membership is usually obtained through participation in the organization, such as depositing money with a building society or taking out an insurance policy.
Traditional examples include building societies and mutual insurance societies.
Because members collectively own the organization, profits or surpluses are generally used for the benefit of members rather than outside investors.
During the 1990s and 2000s, many mutual societies converted into public companies through a process known as demutualization.
A mutual society is an organization owned by its members rather than by external shareholders.
Membership is usually obtained through participation in the organization, such as depositing money with a building society or taking out an insurance policy.
Traditional examples include building societies and mutual insurance societies.
Because members collectively own the organization, profits or surpluses are generally used for the benefit of members rather than outside investors.
During the 1990s and 2000s, many mutual societies converted into public companies through a process known as demutualization.
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