Equiticorp Financial Services Limited (In Liquidation) v Bank of New Zealand

The applicant, Equiticorp Financial Services Limited (In Liquidation), sought special leave to appeal to the High Court of Australia. The dispute concerned the use of a liquidity reserve established by Equiticorp companies. The respondent was the Bank of New Zealand.

The primary legal issue before the High Court was whether the establishment and use of the liquidity reserve, in the context of the facts presented, constituted a contravention of relevant provisions of the Companies Code, specifically concerning the improper use of company funds or assets. The applicant contended that the findings of fact, largely derived from the judgment of Giles J in the Court of Appeal, gave rise to significant questions of law regarding the application of these provisions.

The applicant argued that the facts, which were admitted or undisputed and primarily sourced from contemporary documents, demonstrated that the liquidity reserve was set up due to concerns about the financial position of the Equiticorp group. The subsequent use of this reserve was central to the legal questions. The applicant sought to frame these issues narrowly, despite the extensive material before the court, focusing on the concurrent findings of fact that underpinned the legal arguments.