And the remaining five were independent directors selected by the government to conclude
demutualization.
Because shares can be traded or sold in contrast to ownership rights, which can -not
demutualization increases the possibility of profit for those involved, and tends also to benefit the economy.
counterparts, went through a phase of
demutualization in the late 1990s and early 2000s, the legislature didn't develop regulations for property/casualty
demutualization until 2015.
Subsequent to
demutualization of stock exchange, ownership has been separated through issuance of shares.
The Stock Exchanges (Corporatization,
Demutualization and Integration) (Amendment) Act, 2015, aims at extending the moratorium period provided in chapter III of the Stock Exchanges (Corporatization,
Demutualization and Integration) Act, 2012, as due date had already elapsed due to delay in promulgations the Act.
Upon
demutualization, the Dorrances received stock from the companies with an aggregate fair market value of $1,794,771.
It may be mentioned that the Stock Exchanges (Corporatization,
Demutualization and Integration) Act 2012 provide framework, allowing segregation of ownership and trading rights to enable
demutualization of the stock exchanges.
Yet, such efficiency gains are questionable in many cases in regard to
demutualization (Chaddad).
The concept of
demutualization is expanding globally and Asian countries are more likely to adopt such system to compete international market and hence SECP took essential step in corporatization,
demutualization and integration of Karachi Stock exchange.
on Thursday, has said the
demutualization is aimed at strengthening the insurer's fundraising ability and widening its business options, including mergers and acquisitions, to cope with the dwindling domestic market in graying Japan.
Thus, when policyholders receive stock in a
demutualization, they take a zero basis, and upon a subsequent sale of the stock, the full amount of the proceeds is taxed to them as capital gain.
Demutualization refers to the conversion of a mutual insurer to a stock company.
