In Palmerston North City Council v Farm Holdings (4) Ltd (In Liquidation), liquidators were appointed to Farm Holdings by a creditor. Two District Councils applied to review the appointment of the liquidators. The appointing creditor sought to become a party to their application. The two District Councils opposed the appointing creditor becoming a party.

The High Court found that the fact the appointing creditor had voted to retain the current liquidators in a previous (unsuccessful) attempt to remove the liquidators at a creditors' meeting did not grant the creditor the right to be heard on the Councils' application. The Court said that, while the views of other creditors were a consideration in applications to remove liquidators, they were not sufficient (on their own) to require the other creditors to become parties to such applications.

See Court decision here.