These are companies which are owned by shareholders or stockholders. They are limited liability companies with a subscribed or guaranteed capital. So these companies can compete with the mutual offices there is usually a clause in their Articles of Association restricting the amount of profits to a fixed percentage of the overall profit which can be distributed to the shareholders. for example, 10 per cent with the other 90 per cent being used for the benefit of the policyholders. Many of the proprietary companies transact all classes of insurance.