A mutual company is a company owned by its members or depositors. Common examples include mutual insurance companies and building societies. These companies distribute profits to policyholders rather than shareholders.
Mutual trading refers to situations where the income of a company arises solely from contributions by its members, with those members being the owners of the company. These organizations often operate as mutuals or building societies, and their 'profits' are considered a surplus of contributions rather than taxable profit.
