Re AIC Merchant Finance Ltd (in rec) [1990] 2 NZLR 385 (1990) 5 NZCLC 66,153 is a cited case in New Zealand regarding relief for Illegal Contracts under the Illegal Contracts Act 1970 where validation is not legally possible.

However, briefly between 30 May - 17 July 1986, AIC had not registered with the companies office its new prospectus (no.

This technical oversight left the 38 investors that invested $820,000 during this period being unsecured creditors when the company was placed into receivership on 30 August 1986.

National Mutual filed for an order for validation in the High Court, which was refused.

Richardson J said "[Section] 7 cannot be employed to negate the effect of a provision of the Securities Act.