PROPRIETARY OFFICES
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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. |
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