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.
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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