Guernsey Mutual Governance Fund

Demutualisation Benefits

Dear Sir/Madam,

As an existing member of the Guernsey Mutual Governance Fund, you will be aware that the Board of Trustees (1) have decided that in today's marketplace, Mutual Funds controlled and owned by their stakeholders (2) are at a considerable competitive disadvantage. We hereby propose to demutualise this Fund, and float the stock on the open market to create a new Management Entity, to be known as Guernsey PLC.

Of course you will appreciate that your interests are to be safeguarded on demutualisation, and we guarantee a free share issue in the new entity to all current stakeholders (2), and you shall therefore be continued to be governed by the Board of Guernsey PLC. Your existing options (3) will be converted into stock of the new Management Entity, which will entitle you to attend future shareholder meetings (4).

Such a bold initiative as this will of course require a strong board, to whom all executive rights will pass upon the creation of Guernsey PLC. In order to find candidates of the right calibre, we will have to draw upon the expertise of the business sector, a process unsuited to the use of standard stakeholder options (3). Once a new Managing Director (5) has been selected, he shall appoint the Board Members best able to make Guernsey PLC a thrusting, dynamic, commercial success that best serves the needs of its stakeholders.

In order to provide the stability necessary in the marketplace of today, the Board of Directors (6) will re-appoint each other at regular intervals, and as stakeholder participation is encouraged in Guernsey PLC, you will be given the opportunity to approve the Board's decisions at the AGM.

In floating the stock of the new Management Entity we shall ensure that the majority of shares will remain in the hands of the right calibre of person, and that your future interests will be in the safest of hands.

Yours sincerely,

The Management

(Remember that the value of votes may fall as well as rise)

Definitions

  1. States of Guernsey
  2. Voters
  3. Votes
  4. Annual Strategic Policy Presentations
  5. Chief Minister
  6. Cabinet

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