Re Ezyclad Pty Ltd (in liq)

Ezyclad Pty Ltd was in liquidation and the liquidator sought to examine the company's books of account. The liquidator applied for a warrant to seize the books, which were kept in electronic form, pursuant to section 530C of the Corporations Act 2001. The central issue before the court was whether the warrant should be subject to conditions and whether the seizure of books kept in electronic form includes taking a copy of the electronic record. The court also needed to determine the definition of "books" under the Corporations Act 2001.

The court considered the nature of electronic books and whether they should be treated similarly to physical books. It held that since electronic books are non-rivalrous, meaning they can be used by multiple people simultaneously without diminishing their value, the seizure of such books should not merely involve physical seizure but also include making a copy of the electronic record. The court found that the definition of "books" under the Corporations Act 2001 includes electronic records. Consequently, the warrant should be granted with conditions to ensure the preservation of the electronic records, and the liquidator should be allowed to make a copy for examination.

The court's reasoning was based on the need to adapt traditional legal concepts to modern technological realities while ensuring the integrity and accessibility of corporate records. The decision underscored the importance of clarity in the definition of "books" to facilitate effective corporate governance and oversight. The court granted the warrant with conditions, allowing the liquidator to make a copy of the electronic records for examination purposes.