Victorian independent MP Geoff Shaw is now in the clear after all of the criminal charges against him were dropped.

In a brief mention before the Melbourne Magistrates Court, the prosecution announced it had dropped all of the dishonesty charges after the Department of Public Prosecutions (DPP) determined there was not a reasonable prospect of a criminal conviction.

The DPP is refusing to comment further because the matter has been referred to the Parliamentary Privileges Committee.

But Mr Shaw could still be in trouble if the committee resumes its investigation regarding contempt of parliament.

Speaking to journalists outside his Frankston office, Mr Shaw said he was satisfied with the result of today's court proceedings.

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"The point I came out here today, because you lot were hovering like the wake of vultures that you are, is just to come out and say that I'm pleased with the result," he said.

Speaking on Fairfax radio, Mr Shaw's lawyer Robert Richter would not reveal what was behind the move.

"I can't comment on the case itself," he said.

"But there is one thing I can say and that's I'm terribly pleased with the outcome."

The Victorian Opposition has criticised the DPP's decision to drop the charges.

Mr Shaw has held the balance of power in the Victorian Parliament since March when he defected from the Parliamentary Liberal Party.

A conviction would have triggered a by-election in the independent MP's Frankston seat, making the State Government's future uncertain.

The acting Opposition leader, James Merlino, says the DPP's actions are convenient for the State Government.

"It is hard to understand how at this late stage in the process the DPP doesn't think that there's a reasonable prospect for a conviction," he said.

"But nothing will take away from the ombudsman's report, the findings that Geoff Shaw rorted Victorian taxpayers."

Mr Shaw was facing 24 charges, including misconduct in public office and obtaining property by deception, over the use of his government credit card and car.

Sorry, this video has expired Geoff Shaw speaks to journalists outside his Frankston office

Ten days ago the prosecution agreed to roll all of the charges into one and Mr Shaw applied for the matter to be heard via a diversion program, which would have meant he could avoid a criminal conviction.

Then the following day, the court rejected that option and the original charges were reinstated.

However, despite the DDP's decision to dismiss those charges a Victorian Government minister says it is unlikely Mr Shaw will re-join the Liberal Party.

"The Premier has said previously very clearly he does not anticipate any situation where Geoff Shaw would come back into the Parliamentary Liberal Party," Corrections Minister Ed O'Donohue said.

Mr Shaw prompted uproar in the Victorian Parliament last week when he moved a motion that led to the Labor Party accusing the Napthine Government of doing grubby deals to shore up its position in the Lower House.

Mr Shaw expressed his lack of confidence in Speaker Ken Smith, telling the House he had "degraded" the Parliament.