MDA National Ltd v Medical Defence Australia Ltd

The case of MDA National Ltd v Medical Defence Australia Ltd involves a scheme of arrangement application by two companies, MDA National Ltd and Medical Defence Australia Ltd, seeking orders to convene meetings of their respective members. The Federal Court of Australia was tasked with determining several legal issues, including whether the proceedings were correctly constituted, if each plaintiff could be separately represented, and if the solicitors for the first plaintiff could also act for the defendant. Furthermore, the Court had to decide on the approval of delivering scheme documents to members through electronic links in emails.

The court examined the nature of the proceeding, which was essentially non-adversarial and consensual in nature. The Court held that the proceeding could be properly constituted as a single proceeding involving separate plaintiffs as it reflected the realities of the merger the parties sought to achieve. The Court also found that it would be appropriate for the plaintiffs to be separately represented, including by separate counsel, and that the first plaintiff's solicitors could act for the defendant as well.

In light of the Court's reasoning, the final orders included convening meetings of members for both MDA National Ltd and Medical Defence Australia Ltd to consider and agree to the respective schemes of arrangement. The Court also approved the delivery of scheme documents to members through electronic links in emails and exempted the plaintiffs from certain procedural requirements under the Federal Court (Corporations) Rules 2000.

The proceeding was stood over to 23 October 2014, before Justice Yates, for the hearing of an application to approve the MDA National Ltd and Medical Defence Australia Ltd schemes. The Court granted liberty to restore on two days' notice and ordered the entry of the orders forthwith.