Matthew Camenzuli,from the hard right faction,successfully challenged legal advice obtained by the party which suggested NSW Liberal officials including president Philip Ruddock would cease to hold office after February 28 due to a failure to hold an annual general meeting.
Mr Morrison and the federal Liberal Party had given the NSW division until Monday to “rectify” the legal situation and also preselect candidates for three seats currently held by sitting Liberal MPs,including Mr Morrison’s close ally,Immigration Minister Alex Hawke.
But on Friday the NSW Supreme Court upheld Mr Camenzuli’s challenge,overruling the legal advice obtained by the party and declaring members of the state executive could remain in office under the party’s constitution.
Despite the party’s failure to hold an AGM by the expected date,“no member of the state executive ceases to hold office as such by reason only of that circumstance”,ruled Julie Ward,the chief judge in equity.
The state executive is responsible for running preselections in federal seats in NSW. Mr Hawke is Mr Morrison’s representative on the committee.
Friday’s ruling does not prevent a federal takeover of the NSW division,but will put pressure on party officials to cast aside their factional warfare and endorse the three sitting MPs - Mr Hawke,Sussan Ley and Trent Zimmerman - and select candidates quickly in six other seats.
All the seats are ordinarily winnable for the Liberal Party,including Hughes (held by turncoat MP Craig Kelly),Bennelong (where Liberal John Alexander is retiring),Warringah and Eden-Monaro.