9 February 2018 13:30
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Initiated in 2011, the process of demutualization ofEconomical has taken a new step. Profit sharing between policyholders of policies of mutual and non-mutual has been defined.
The company now has until 30 June to submit to the Office of the superintendent of financial institutions (OSFI) a formal proposal of transformation that details how it will become a stock company. An annual general meeting extraordinary will be called.
At this time, more than 630,000 policyholders will be asked to vote. The insurer anticipates that it will be one of the largest votes in the history of financial canadian, or even the largest.
Several months of negotiations
John Bowey, chair of the board of directors of the Company and the special committee on demutualization, stressed that the negotiations between the mutual policyholders and policyholders non-mutuals are staggered over several months. He has also qualified these negotiations complex.
The agreement between the boards of underwriters of policies remains subject to the finalization of a formal resolution documenting the details of the agreement. It should, however, be adopted shortly. These details will remain confidential, a court order forbidding anyone to disclose anything.