DEMUTUALISE Meaning and
Definition
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Demutualise is a verb that refers to the process of converting a mutual organization, such as a mutual insurance company or a mutual building society, into a publicly traded, profit-seeking company. This term is most commonly associated with financial institutions, where it entails the transformation of a mutually owned entity owned by its members into a publicly traded corporation owned by shareholders.
During the demutualisation process, the mutual organization alters its legal structure, allowing it to issue shares and raise capital from external investors. This often involves demutualising institutions reorganizing their governance, capital structure, and ownership arrangements. Typically, the members of the mutual organization receive shares in the newly formed company as compensation for their ownership interest in the mutual organization. Consequently, they become shareholders and may either retain their shares or choose to sell them on the open market.
The demutualisation of an organization is undertaken for various reasons, including the desire to access additional capital, improve corporate governance, enhance competitiveness, and increase operational flexibility. By transforming into a publicly traded company, demutualised organizations can also gain the ability to engage in mergers and acquisitions, access public markets for fundraising, and potentially offer their shareholders liquidity through trading of their shares.
It is important to note that the act of demutualising represents a significant shift in the ownership and operating model of an organization, moving from a mutual, member-owned structure to a shareholder-owned model.
Etymology of DEMUTUALISE
The word "demutualise" is derived from the combination of two words: "de-" and "mutualise".
The prefix "de-" in English is typically used as a negating prefix, indicating the reversal or removal of something. In this case, it signifies the reversal or removal of the process of mutualising.
The verb "mutualise" or "mutualize" is derived from the noun "mutual", which means "shared", "reciprocal", or "common". "Mutualise" refers to the act of converting an organization or company, typically a mutual organization, into a company owned by shareholders and operated for profit. It involves changing the structure of an organization from a mutual company where policyholders or members collectively own and control the company, to a company where shares are held by individual shareholders.
Conjugate verb Demutualise
CONDITIONAL
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would demutualise
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CONDITIONAL CONTINUOUS
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would be demutualising
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CONDITIONAL PERFECT
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would have demutualise
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CONDITIONAL PERFECT CONTINUOUS
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FUTURE
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FUTURE CONTINUOUS
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FUTURE PERFECT
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FUTURE PERFECT CONTINUOUS
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IMPERATIVE
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demutualise
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let´s demutualise
to demutualise
PAST
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demutualised
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demutualised
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demutualised
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PAST CONTINUOUS
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was demutualising
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PAST PARTICIPLE
demutualised
PAST PERFECT
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PAST PERFECT CONTINUOUS
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PRESENT
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demutualise
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demutualises
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demutualise
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PRESENT CONTINUOUS
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am demutualising
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PRESENT PARTICIPLE
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PRESENT PERFECT
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PRESENT PERFECT CONTINUOUS
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