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Himanshu

Himanshu (Querist)
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07 October 2013 Experts what is meaning of corporatisation and demutualisation in SCRA

Sanket

Sanket (Expert)
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07 October 2013 Corporatization refers to the
transformation of state assets or
agencies into state-owned corporations
in order to introduce corporate
management techniques to their
administration. Corportaization is
sometimes a precursor to partial or full
privatization, which almost always refers
to a process by which formerly public
assets or functions are sold or given to
corporate entities by listing the shares
of the state-owned corporation on
publicly-traded stock exchanges. A
common model is for state institutions
to be corporatized and operated as
autonomous joint-stock companies,
while still being majority state-owned
and run by state entities separate from
a central government.This concept is a
major feature of the socialist market
economy.

Sanket

Sanket (Expert)
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07 October 2013 Demutualization is the process by which
a customer-owned mutual organization
(mutual) or co-operative changes legal
form to a joint stock company.It is
sometimes called stocking or
privatization. As part of the
demutualization process, members of a
mutual usually receive a "windfall"
payout, in the form of shares in the
successor company, a cash payment, or
a mixture of both. Mutualization or
mutualisation is the opposite process,
wherein a shareholder-owned company
is converted into a mutual organization,
typically through takeover by an existing
mutual organization.

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