BIM24020 - Mutual trading: introduction:
characteristics
Characteristics of a mutual trade
For a trade to be a mutual trade there must be:
- complete identity, as a class, between the
contributors to the mutual surplus and the participators therein
(see
BIM24105); and
- arrangements which ensure that the surplus
ultimately finds its way back to the contributors
and no arrangements for it to go to anybody else
(seeBIM24110); and
- a reasonable relationship between the
amount a person contributes to the surplus and the amount
distributed to them on winding up (see
BIM24115); and
- arrangements that entitle the contributors
to the common fund to control it (see
BIM24120).
