Case Studies – Demutualization of Co-operatives and Mutuals

Summary

The purpose of this report is to examine the pressures that arise for demutualization and to show that these pressures are linked to what can be called “good governance.” The major conclusion of this report is that demutualization, if it occurs, is not an isolated event. Instead, demutualization occurs when the co-operative is not performing well on numerous fronts such as financial performance, member engagement and, most importantly, governance. In effect, demutualization is a sign of a co-operative that is unhealthy in some way, one that has not paid attention to the key issues necessary for its success.