Proposed Scheme of Arrangement between MDDUS and its Members
In September 2019, MDDUS entered into a transaction with the Secretary of State for Health and Social Care (DHSC) in relation to English GP liabilities (the Transaction). Under the terms of the Transaction, it has been agreed that DHSC will provide access, through the establishment of an existing liabilities scheme, to discretionary indemnity to members and former members of MDDUS for liabilities arising from clinical negligence relating to incidents that occurred prior to 1 April 2019 (and while they were members of MDDUS) in the provision of NHS services in England as part of general practice.
On 20 January 2020, MDDUS wrote to its members to seek their support in implementing the Transaction by way of a scheme of arrangement under Part 26 of the Companies Act 2006 (the Scheme).
Members have been separated into two classes for the purposes of the Scheme: “In-Scope Members” and “Non-In-Scope Members”.
- In-Scope Members are, in summary, those members of MDDUS who have, at any time prior to 1 April 2019 and while a member of MDDUS, worked in general practice providing services as part of the NHS for England.
- Non-In-Scope Members are all members of MDDUS who have not, at any time prior to 1 April 2019 and while a member of MDDUS, worked in general practice providing services as part of the NHS for England.
The Scheme requires approval from each class of members at the relevant members’ meeting. Members are requested to cast their vote by completing, and returning, the Form of Proxy in the pre-paid envelope sent to them or by appointing a proxy online, in either case as soon as possible and, in any event, by 7 February 2020, even if they intend to attend their members’ meeting in person.
The following documents were sent to members:
- Chair’s Action to Take Letter (specific to that member’s class):
- Notice of Court Meetings
- Form of proxy (specific to that members’ class):
- Chair’s Letter
- Scheme Circular
- Draft Articles of Association as proposed to be amended by the Scheme
- Draft Membership Agreement as proposed to be amended by the Scheme
- Frequently Asked Questions – updated (28 January 2020)
- MDDUS Helpline - 0333 043 0000
Expected timetable of principal events
|Event||Time and/or date|
|Deadline for returning the Form of Proxy for In-Scope Members and for appointing a proxy online for the In-Scope Members Court Meeting||10.00 a.m. on 7 February 2020|
|Deadline for returning the Form of Proxy for Non-In-Scope Members and appointing a proxy online for the Non-In-Scope Members Court Meeting||10.30 a.m. on 7 February 2020|
|In-Scope Members Court Meeting||10.00 a.m. on 11 February 2020|
|Non-In-Scope Members Court Meeting||10.30 a.m. on 11 February 2020 or as soon as reasonably practicable following the conclusion of the In-Scope Members Court Meeting|
|Court Hearing to sanction the Scheme||5 March 2020|
|First target date for Regulations Condition to be satisfied by||00.01 a.m. on 6 April 2020|
|Court Order delivered to the Registrar of Companies||6 April 2020|
|Effective Date||6 April 2020|
|Long-Stop Date||00.01 a.m. on 1 April 2021*|
The above dates are indicative only and are subject to change.
*This is the last date on which the Scheme may become Effective, unless MDDUS and DHSC agree in writing, and the Court allows, a later date.