Implementing a merger of mutuals involves many decisions including the actual legal method.

One of the factors to consider in choosing a merger by way of scheme of arrangement under the Corporations Act is that decisions (including the approval of the member information document, the convening of a member meeting and ultimately the scheme itself) are at the discretion of the court.

In the recent merger between Lifeplan Australian Friendly Society Limited and Australian Unity Limited, Victorian Supreme Court Judge Robson initially refused to approve the convening of a meeting of members until further information was provided (decision here) but ultimately approved it (here).

The merger was approved by members and proceeded.