THE OFFICIAL ASSIGNEE V GRANT THORNTON HC AK CIV 2011-404-005724

THE OFFICIAL ASSIGNEE V GRANT THORNTON HC AK CIV 2011-404-005724

Section 261(3)(b) does not empower the liquidator to require production of documents that belong to a third party; production of such documents is an extraordinary discretionary power of the Court under s266(2)(b); applying the balancing exercise the Assignee's investigation was bona fide and the public interest and need to investigate Rockforte's collapse outweighed Grant Thornton's confidentiality and burden concerns, therefore an order for production of the requested audit-related documents was granted, leave reserved for further directions and no order as to costs.

Citation
openlaw-f3088e9d_7899_48ce_8a14_3730959dd0bf.pdf
Parties
Applicant (liquidator): The Official Assignee; Respondent (auditor): Grant Thornton
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 August 2012
Procedural Posture
Interlocutory Application Under Companies Act 1993 for Production of Documents (s266) / High Court Hearing and Judgment (associate Judge Abbott, 23 August 2012)
Outcome
Application granted
Legal Topics
Liquidator Powers, Document Production, Auditor Working Papers, Companies Act S261 and S266, Confidentiality and Privilege
Company Law Insolvency Civil Procedure Evidence Liquidator Powers Document Production Auditor Working Papers Companies Act S261 and S266 +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

The Official Assignee

Applicant (liquidator)

Grant Thornton

Respondent (auditor)

Procedural Posture

Interlocutory Application Under Companies Act 1993 for Production of Documents (s266) / High Court Hearing and Judgment (associate Judge Abbott, 23 August 2012)

Legal Issues

  1. 1 Whether s261(3)(b) of the Companies Act 1993 compels production of an auditor's own documents
  2. 2 Whether the Court should exercise its discretion under s266(2)(b) to order production of audit files and other documents
  3. 3 How to balance the liquidator's investigative needs and public interest against burden, confidentiality and privacy interests of the producing party

Ratio Decidendi

Section 261(3)(b) does not empower the liquidator to require production of documents that belong to a third party; production of such documents is an extraordinary discretionary power of the Court under s266(2)(b); applying the balancing exercise the Assignee's investigation was bona fide and the public interest and need to investigate Rockforte's collapse outweighed Grant Thornton's confidentiality and burden concerns, therefore an order for production of the requested audit-related documents was granted, leave reserved for further directions and no order as to costs.

Court Disposition

Application granted

Orders

  • Grant Thornton ordered to produce all books, records, papers and other information relating to Rockforte Finance Limited in its possession or under its control (excluding correspondence already agreed to be provided)
  • Grant Thornton ordered to produce all audit work and paper files created, generated or collated as part of any evaluation, audit or assignment undertaken for or in respect of Rockforte Finance Limited