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Windfall Shares

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Windfall Shares
Shares given without charge to the owners of a mutually-owned company when that company is in the process of demutualizing. Because the owners will no longer be the owners when the company demutualizes, windfall shares are designed to compensate them for their previous ownership. This is intended to encourage goodwill. It also gives the former owners a continued stake in the company.


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The 4% rise gives someone with an average 673 windfall shares pounds 82.
Year after year, they voted to forego the windfall shares they stood to receive in a de-mutualisation.
But he is understood to be keen to placate B&B's 850,000-plus small shareholders, many of whom qualified for windfall shares when the company demutualised, and win their backing for the deal.
 
 
 
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