The Supreme Court has granted an order approving a scheme of arrangement for the restructuring of Victoria Mutual Building Society (VMBS) and its subsidiaries.

The restructuring will see the establishment of a new financial holding company (VM Financial Group Limited) and a non-financial holding company (VM Innovations Limited), both of which are to be held under a mutual holding company called ‘VM Group Limited’, set to replace VMBS as the parent company.

Aside from non-financial entity VM Innovations, the financial group — which includes VM Building Society, VM Investments, VM Wealth Management, VM Money Transfer Services, VM Pensions Management, VM Property Services, VM Properties Limited, VM Finance (UK), VM Overseas (UK) and affiliate companies Carilend and British Caribbean Insurance Company — will also operate under the VM Group.

Carilend is an online lending platform.

The VM Group will, however, continue to be wholly owned by its members, a majority of whom gave their overwhelming approval for the scheme of arrangement at the company’s annual general meeting held in August.

The scheme is being undertaken to ensure compliance with the Banking Services Act, which requires a corporate group holding financial businesses and non-financial businesses to become reorganised by separating the financial services companies from the non-financial ones. The reorganisation will also provide the group with greater operational flexibility, a move the company said will “enhance its ability to raise capital and fund growth targets, ultimately benefiting members”.

Seeking to further build on its current membership base of over 300,000 members, the 143-year-old company hopes to triple its numbers to reach about one million in the next three years. As part of its strategy, it is significantly powering through the addition of improved products and services and digital technologies.

“This is an historic moment for VM,” commented Courtney Campbell, group president and chief executive officer, reacting to the court’s approval late last week in a company release.

He said it marks a critical milestone in the company’s history as it journeys to become a stronger and better organisation.

“I’m grateful to our members for the overwhelming support they have shown for this scheme of arrangement and for understanding that this will no doubt lead to unprecedented growth for their organisation and consequently, more people being empowered to achieve financial well-being,” he also stated.

Total assets for the group at the end of its 2021 financial year valued at $192 billion.