International Law

MBF demutualisation scheme

The Federal Court has authorised MBF Australia Limited to convene a meeting of its members to consider a scheme of arrangement which involves the company's demutualisation ( MBF Australia Limited, in the matter of MBF Australia Limited [2008] FCA 428)

The reasons for the decision are of interest because they consider, in addition to the Court?s consideration of whether to approve the Scheme under s 411(4)(b) of the Corporations Act, the conditions imposed by the Private Health Insurance Administration Council (PHIAC) namely:

(a) that the conversion scheme would not result in a financial benefit to any person who is not a policy holder of, or another person insured through, a health benefits fund conducted by the insurer; and

(b) that the conversion scheme would not result in financial benefits from the Scheme being distributed inequitably between such policy holders and insured persons.

The Scheme Information Memorandum has been published on MBF's website here.

Full post as published by Australian Regulatory Compliance Review on April 11, 2008 (boomark / email).