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National

Court settles stoush between Liberal Party NSW and federal executives

Philip Ruddock (left) will notify NSW executive members they can stay despite the attempted intervention led by Alex Hawke. (AAP: Dan Himbrechts, Mick Tsikas)

A stoush between NSW branch of the Liberal Party and federal executives has been settled by the Supreme Court.

NSW member Matthew Camenzuli sought an urgent declaration that members of the state executive could continue in office beyond Monday, after they missed an annual general meeting (AGM) to select new office holders because of COVID-19 – a meeting they were formally obliged to hold.

The federal executive had given them Monday as a deadline, after which it would step in to choose candidates for the federal election.

However Mr Camenzuli on Friday claimed a Supreme Court victory that will allow the state executive to stay in office after Monday — the day office holders' term ends.

Mr Hawke is a close ally of the Prime Minister. (AAP: Mick Tsikas)

State president Phillip Ruddock said the NSW branch had wanted the "uncertainty" over the executive operation to be "resolved" and "dealt with" — and now it had.

"[I'm] writing to advise our members that they can continue to serve," he said.

The state executive is responsible for endorsing federal candidates, something it is still yet to do for some sitting MPs.

Its failure to hold the AGM resulted in a federal attempt led by Immigration Minister Alex Hawk, a close ally of Prime Minister Scott Morrison, to intervene.

Mr Hawke was one of three MPs yet to be re-endorsed by the NSW Liberals ahead of the looming election.

Mr Hawke's legal bid would have seen the state executive cease to hold power leading up to the federal intervention.

It could have seen the federal executive choose candidates for nine seats, including Warringah, Farrer, North Sydney and Mitchell.

The Prime Minister called on the NSW Liberals to endorse Mr Hawke, Environment Minister Sussan Ley and North Sydney MP Trent Zimmerman.

Mr Ruddock says the uncertainty has been resolved. (AAP: Dan Himbrechts)

But NSW Supreme Court Chief Judge in Equity Julie Ward ruled late on Friday that the state executive could continue to serve past the Monday deadline set by the party's federal arm.

"I have concluded with some hesitation that the natural meaning of the words "until the next AGM" is premised on such an AGM occurring," Judge Ward said.

"Such that if an AGM does not occur, then the event on which the termination of office will happen has not arisen and the elected office-bearer continues in office until such time as an AGM is held."

The executive still needs to hold its annual general meeting to elect office-bearers.

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