| The process by which a mutual organisation such as a building society changes itself into a company. Quite often accompanied by payouts to members of the building society, which has attracted the interest of carpetbaggers. Also known as 'demutualisation'. Can also refer to, the process of converting convertible loan stock in a company (or a bond) into ordinary shares. The right to convert, usually only on a particular date, is inherent in the convertible loan stock. The company will issue a notice to shareholders telling them of the process and the applicable conversion ratio, namely how many ordinary shares will be exchanged for each unit of convertible loan stock.
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