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Mutual company. A corporation that is owned by a group of members and that distributes income in proportion to the amount of business that members do with the company. Mutual Company. A company structure in which the company's owners are also its clients.
In order for a company to be privately held, it must be organized as a corporation. A corporation is a legal form of business that is established by a corporate charter granted by a particular state. The corporate charter establishes the corporation as a separate legal entity from its owners.