Harmonization Issues definition
Harmonization Issues including:
(a) Business Haromonization:
(i) Do both individual corporations undertake same classes of insurance ?
(ii) Do both individual corporations declare refunds from surplus?
(iii) Are the investment policies for both individual corporations the same?
(b) Board Harmonization:
(i) Corporations Act requires that Mutuals have a board of 6, 9, 12 or 15. The size of the Board of the amalgamated corporation needs to be agreed upon, and whether it is then to reduce in size over time through attrition.
(ii) Are Boards prepared to advocate interests of new amalgamated corporation rather than advocating protection of individual corporations?
(iii) Corporations need to determine if Board members must be “members” of the Corporation (as this is no longer required by the Corporations Act).
(iv) Are Boards of individual Corporations “policy boards” or “hands on boards”?
(v) Are processes for nomination of new Board members consistent, or what changes will need to be accepted in amalgamated corporation?