Proposed Scheme of Arrangement between MDDUS and its Members

*Update: MDDUS Announcement - Results of the Court Meetings*

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:

MDDUS Announcements

More Information:

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*

Notes:

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.

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