Answers » Categories » Banking

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.


0
1 Report

1 Answer
0 
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.
Apr 4th, 2012 at 12:51 PM
Reply

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question

Ask a Question

Categories