Southern Equities Corp Ltd (in Liq) v Arthur Andersen & Co (Reg) (No 11) No. Scciv-94-1474

Southern Equities Corp Ltd (in Liquidation) v Arthur Andersen & Co (Reg) (No 11) No. Scciv-94-1474 was a case brought by the liquidator of Southern Equities Corp Ltd, seeking to hold Arthur Andersen & Co accountable for their role in the auditing process of the company. The dispute involved the admissibility of transcripts from examinations of certain individuals, including Gardener and Parkin, under section 45B of the Evidence Act. Arthur Andersen & Co argued that the plaintiff had to establish the basis for the admissibility of these transcripts, a contention rejected by the court. The legal issues at the heart of this case revolved around the admissibility of the examination transcripts under section 45B of the Evidence Act, and the extent to which section 597(14) of the Corporations Law could be used to facilitate the admissibility of such transcripts in court.

The court found that the transcripts of the examinations were admissible under section 45B of the Evidence Act, as they contained statements of fact relevant to the case. The plaintiff argued that these transcripts should be independently admissible, while Arthur Andersen & Co contended that the admissibility of the transcripts depended on common law principles or other statutory provisions. The court disagreed, stating that section 45B of the Evidence Act was sufficient for the admissibility of the transcripts. The court further held that the admissibility of the transcripts under section 597(14) of the Corporations Law was facilitative, meaning that the plaintiff had to establish the admissibility of the transcripts according to the rules of evidence. The court ruled that the transcripts of all examinees were admissible, subject to further argument regarding specific passages that may be deemed inadmissible.

In conclusion, the court ruled that the transcripts of the examinations of all examinees, including Gardener and Parkin, were admissible under section 45B of the Evidence Act. The admissibility of the transcripts under section 597(14) of the Corporations Law was found to be facilitative, meaning that the plaintiff had to establish their admissibility according to the rules of evidence. The court's decision was based on the rationale that the purpose of section 597 of the Corporations Law and the examinations conducted under it was to assist the liquidator in the prosecution of these proceedings. The court's final orders allowed for the admission of the transcripts subject to further argument, if necessary, as to particular passages said to be inadmissible for some particular reason not yet identified.