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Mutual organization

Mutual organization Definition

A mutual organization (or society) is a cooperative organization (which is often, but not always, a company or business) based on the principle of mutuality. A mutual organization or society is often simply referred to as a mutual.


A mutual exists with the purpose of raising funds (or money), from its membership or customers (collectively called its members), which can then be used to provide common services to all members of the organization or society. A mutual is therefore owned by, and run for the benefit of, its members - it has no external shareholders to pay in the form of dividends, and as such does not usually seek to maximise and make large profits or capital gains. Mutuals exist for the members to benefit from the services they provide.


Profits made will usually be re-invested in the mutual for the benefit of the members, although some profit may also be necessary in the case of mutuals to sustain or grow the organization, and to make sure it remains safe and secure.








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