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There are two types of mutual holding companies (“MHC”): (1)
those that offer no stock to its members and (2) those that offer
a minority interest in the institution (i.e., up to 49%) to its
members.
Unlike a mutual to stock conversion, an MHC maintains your
mutual form of ownership and makes you invulnerable to a
takeover attempt by a stock company (but not another mutual
company). However, unlike a mutual to stock conversion, an
MHC formation (whether or not stock is offered) is a major step
for any mutual institution. That’s why SF&T has prepared a free
booklet entitled “The Mutual Holding Company Alternative.” To
receive this free booklet, without cost or obligation, please click
here.
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