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What are the differences between a mutual holding form and a full stock form in regards to a bank?

My bank is in the process of converting from a mutual holding form to a full stock form. I am unsure of what each of those forms are. The are asking all depositors to vote for or against the conversion.

1 Answer

A mutual company is a corporation that has no shareholders. It has members with certain rights. Members can, for example, participate in corporate governance (by electing directors), they have the right to dividends, the right to receive any remaining value if the corporation is liquidated. But members cannot sell their rights to someone else.
A stock company is a corporation that has shareholders whose ownership interest is represented by shares of stock that can be sold. Shareholders also have rights to receive dividends, voting rights and rights to share in the proceeds recovered when the corporation liquidates its assets.

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