The High Court has thrown out a bid by businessman and former Federal MP Clive Palmer to stall questioning by the liquidators of his collapsed company Queensland Nickel.
The company went into administration with $300 million in debt in January.
Liquidators are trying to ascertain if Mr Palmer was acting as a shadow director when the company collapsed, resulting in the loss of hundreds of jobs.
Mr Palmer has already been compelled to answer questions by the Federal Court in Brisbane under the Corporations Act.
But he challenged the validity of a law the liquidators used to compel him to answer questions about the company, saying it was invalid because it took away the court’s discretion.
But after a day-long hearing, with Mr Palmer present for portions of proceedings, the High Court ruled on the spot, finding the law is valid and the courts could call and compel witnesses to answer questions in liquidation proceedings.