A failed finance company’s auditor must show a copy of his professional indemnity policy to a receiver, after a court ruled it was relevant to the company’s affairs.

Banksia Securities, which offered mortgage finance across regional Victoria, collapsed last year.

The receiver wants to examine Michael Hall of MB+M Business Solutions, who signed off on the company’s annual report for 2007/08.

Mr Hall argued the receiver is not entitled to request third parties’ confidential insurance documents when investigating potential action against them.

The receiver is investigating whether provisioning for some of the company’s loans that year might have been materially inadequate.

The receiver says Mr Hall was also chairman of Banksia’s audit and corporate governance committee between 2009 and last year. It has not made a formal claim against the auditor.

Mr Hall disputed a summons to provide all documents relating to insurance for MB+M and its partners, plus letters notifying insurers of potential liability arising from Banksia, and any responses.

But Associate Judge Simon Gardiner says a company liquidator is not an ordinary litigant – it is an officer of the court, with a duty to maximise return to creditors.

The receiver comes to a company with limited knowledge of it, so is at a disadvantage.

He says there is no doubt Mr Hall might have information on Banksia’s affairs for the receiver, and the insurance documents are relevant.

“The receivers should be entitled to embark on the examination of Mr Hall armed with all the relevant documentation that relates to his involvement in the examinable affairs of Banksia.”