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Demutualisation Definition


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Demutualisation

The process building societies go through when they convert to banks and thus go from being owned by their members (the borrowers and savers of the society) to being a Public Limited Company owned by shareholders.
There are pros and cons of changing from a building society into a Public Limited Company, one of the pros being that current savers with the building society recieve handsome one-off payments, often in the form of shares in the newly-formed company.

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