Which one of the following statements correctly defines demutualisation?

Question

Quizplus · Accepted Answer

Demutualisation refers to the process of converting a mutual organization (such as a building society) into a company with shareholders. In this process, the mutual members usually receive shares in the new company. Option A correctly defines demutualisation as the process of a mutual building society becoming a stock corporation and floating on the stock exchange. Option B is incorrect as it describes a change in control structure rather than demutualisation. Option C is incorrect as option B is incorrect. Option D is incorrect as there is a correct definition provided in option A.

Which One of the Following Statements Correctly Defines Demutualisation