UK mulls mutualising Post Office as part of Royal Mail revamp
19 Sep 2011
The UK government's plans for its Royal Mail include proposals like the Post Office being put up for mutual ownership. Mutualisation is the reorganisation of (a corporation) so that the majority of common stock is owned by customers or employees.
With mutualisation, sub postmasters, customers and communities would get a say in how the Post Office arm of the network should be run, which would include the appointment of directors.
According to ministers, the Post Office could be on a "clear path" to mutualisation by the end of this parliament as consultation of proposals got under way.
The move comes in the wake of the controversial announcement to privatise the Royal Mail side of the postal business, which, according to the government was necessary to protect its future as also to ensure growth.
The consultation comes after a report this year led by Co-operatives UK suggested the setting up of a mutual body such as a company or a co-operative with members including staff and customers.
The government would then transfer the ownership of the Post Office to that body, which would also have a say in board appointments as also sharing in profits.
