Ms Bailey's body was found near Mullum Mullum Creek in Donvale, in Melbourne's East, on Thursday and her son, Stephen Bailey, 34, was charged with one count of murder on Friday afternoon, three days after his mother was reported missing from their Mont Albert home.

Ms Bailey, 59, was the daughter of late Carlton great Laurie Kerr. Her mother Vivienne is the club's number one female ticket holder.

A senior barrister who appeared on Friday for Stephen Bailey said he was "exceedingly concerned" for his client's condition which he described as a "florid state".

The barrister Christopher Dane QC told Melbourne Magistrates Court that Mr Bailey was sedated on Friday morning at the Thomas Embling Hospital and could not be "raised" for a conference.

Mr Dane said staff at the psychiatric hospital were "very upset" that Mr Bailey was removed from the facility and charged despite having a bed available and were "hoping to have him back".

He submitted it was "quite extraordinary" that Thomas Embling was "advocating on (Mr Bailey's) behalf".

Mr Bailey's father was present in court with his son's lawyers for the hearing.

Prosecutor Susanna Locke said that the office of public prosecutions had liaised with the hospital and police prior to the filing of the charge and that processes were in place to facilitate Mr Bailey's transfer back as soon as possible.

Mr Dane told magistrate Jan Maclean he preferred that his client did not have to be brought into court and she agreed, saying the contents of an affidavit by a homicide detective she read were sufficient to direct that he not appear.

Ms Maclean accepted that it was a difficult matter "for all concerned", granted an application by police that Mr Bailey undergo a compulsory forensic procedure and requested that he be transferred to Thomas Embling "as a matter of urgency".

He was ordered to appear in February at a committal case conference.

The Kerr family released a statement on Friday afternoon thanking the public for the support it had received since Ms Bailey's disappearance.

"Penny was a beautiful women and mother of three children. She will be remembered for her caring nature, warm heart and love of family," her family said.

"The Kerr family is large. Vivienne and Laurie Kerr had nine children - there are 34 grandchildren and 24 great-grandchildren.

"The entire family is focused on providing Penny's daughters, Belinda and Shannon, with comfort at this time."

Carlton also released a statement on Friday expressing the club's shock and sadness at the tragic news.

"The Kerr family is a much-loved part of the Carlton football club," the statement says.

"The thoughts of everyone at Carlton are with Vivienne, Judy and the entire Kerr family."

Ms Bailey's sister Judy is president of the Women of Carlton supporter group.

Mr Bailey played reserve grade football for Carlton in 2002, pulling on the number 58 guernsey.

The onballer was playing at Donvale when he was called up by the Blues. He had also played with Balwyn.

Mr Bailey headed back to play with Donvale before joining the Box Hill Hawks in the VFL in 2004, where he was a best-and-fairest winner.

Soon after, he travelled to Adelaide to play in the SANFL. It is believed he returned to Melbourne in 2007.

His late grandfather, Laurie Kerr, played 149 games for the Blues in the 1950s and became a powerful off-field figure at the club.

His grandmother Vivienne runs one of the largest properties in the Yarra Valley, where she produces wine and cattle.

"The Kerr family has been prominent in Melbourne for many years," 3AW radio host Neil Mitchell said.

"I do know some members of the family personally; they are very close and very respected.

"It just shows, no family is exempt from this kind of trauma. It is very, very sad."

Ms Bailey was last seen in "good spirits" on Sunday when she had dinner with one of her daughters.

It is understood her siblings and daughters forced their way into her Strabane Avenue townhouse after being unable to reach her. They raised the alarm after finding signs of a struggle inside.