What is a mutual organisation?

A mutual organisation is a company that is owned by its members, who are usually also its customers, rather than by shareholders interested in receiving a return on their investment.

There are several types of mutual organisations in Australia, including credit unions, some health insurers, some superannuation funds and motoring organisations like the RACV.

Why does it matter?

Mutuals matter because profits generated are invested back into the company for the benefit of its members, customers and the community. This is in contrast to publicly traded companies where profits are distributed to shareholders without necessarily benefiting the company’s customers.

This means that mutuals can focus entirely on benefiting their members, whereas publicly traded companies tend to focus on creating profits for shareholders.

Member Ownership

Mutual organisations are owned entirely by their members, who have a say in how the organisation is run.

As a member of UFS, you are entitled to attend and vote on business matters at our Annual General Meeting, usually held in November each year. Members can nominate to receive the Annual Report or notice of AGM, by calling the Central Office on 5327 7777 or by logging in to the secure membership section here.

If you are not already a UFS member and would like to become one, find out more here.

Annual Reports can also be downloaded here.