Mutual Organization
/ˌmjuːtʃuəl ˌɔːrɡənaɪˈzeɪʃən/
Definitions
- (n.) An organization owned and operated by its members for their mutual benefit, often in insurance, banking, or cooperative sectors.
The mutual organization returned dividends to its policyholders instead of external shareholders.
Forms
- mutual organization
- mutual organizations
Related terms
See also
Commentary
Mutual organizations differ from investor-owned firms by emphasizing member control and benefit; precise drafting should clarify member rights and profit distribution.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.