"Standard Life will not
demutualise unless eligible members vote for the proposals at a special general meeting planned for May or June 2006.
However, many building societies have got wise to the opportunists and now require new members to donate their windfalls to charity when they
demutualise.
Mr Bailey told Ministers that he kept his money in the West Brom wich Building Society, one of the few major building societies which refused to
demutualise. It was still going strong, he said.
To
demutualise, so distributing "free" shares to policyholders, could seem superficially attractive, but it would mean profound changes in the running of the company.
This is a question which is being asked more and more as pressure increases on insurance companies and building societies to
demutualise.
He said: "We have a clear and emphatic vote of confidence in our proposal to
demutualise, and this decision is an excellent outcome for the future of Standard Life."
-STANDARD Life, our largest remaining mutual insurer, is pressing ahead with plans to
demutualise next year.
I'VE been told my Standard Life endowment would not qualify for a windfall if they decided to
demutualise. Could you explain why?
The financial giant has 2.4 million eligible members in 146 countries around the world who may be eligible for payments should the company
demutualise. However, 75 per cent of members must vote in favour of the proposal for this to happen.
If Standard Life does
demutualise there would be only a handful of mutual life insurers left, including Equitable Life, which is closed to new business.
Standard Life members are in line for average windfalls of around pounds 1,700 after the insurer released details of its plans to
demutualise today.
However, to deter carpetbaggers, new policyholders will not now be entitled to any pay-out if the company is forced to
demutualise in the first three years of their contract.
