Table of ContentsDemutualizationPre-Merger Shareholder StructurePre-Merger Management StructurePost-Merger Shareholder StructurePost-Merger ManagementAdvantageDemutualizationThe process by which a mutual company becomes a publicly traded company. A mutual is a company owned by its members or users for the benefit of these members or users. During demutualization, members give up their rights and receive shares in the company in exchange, which the (now former) members can then sell. Demutualization most often occurs when a member-owned exchange goes public. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get Original Essay Additionally, demutualization is the process by which a customer-owned mutual (mutual) organization or cooperative changes its legal structure to form a joint stock company. Historically, stock exchanges began as self-regulated and mutually governed structures, where profit was not a very important motive. Stock exchanges were authorized to promulgate regulations to govern their operation. Pre-Merger Shareholder Structure PSX previously operated as a nonprofit organization with a pooled structure in which its members had trading and ownership rights. This structure inherently created a conflict of interest and was perceived to endanger the interests of investors. Consequently, the Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012 (“Demutualization Act”) was enacted by the Government. Management structure before the mergerThere were physical locations with trading rooms. The exchanges had a cooperative and interdependent structure. However, with technological innovation came the electronic trading system. The concept of floor trading no longer held water, therefore the physical presence of the trader was no longer important, which meant that the cost of onboarding additional members dropped significantly, thereby reducing the overall cost of trading. The contribution didn't matter much. This in turn reduced the importance of mutual dependence and cooperation. The result was demutualization.Board of DirectorsInternal Audit and Corporate SecretaryGeneral Managers Head of Training Institute and Human ResourcesTraining House, Library, Human Resources and Marketing DepartmentHead of OperationsMarketing MonitoringExposure and Risk Management/Clearance CenterHead of legal and members' affairsAdministration/building maintenance and business affairs.Chief Financial OfficerAccounting and FinanceChief IT OfficerStructure of shareholding after mergerIn accordance with the plan imagined within the framework of the Law, the entire paid-up capital of the Stock Exchanges as established after the revaluation profits and liabilities were similarly allocated to the original shareholders who were previously the individuals of the Stock Exchanges. These underlying investors can hold up to 40% of the offerings allocated to them while the 60% stake has been compulsorily held by the Exchange. According to the provisions of the law and the regulations framed below, up to 40% of these registered offers could be distributed to a strategic investor and financial institutions, while the remaining 20% ​​should be allocated to the entire the population. Returns from such divestment must be distributed equally among 121 investors. As provided for in the Demutualization Act, Members have now ceased to be members of PSX and have..