The money is needed for the smooth operation of the state branch and senior Liberal figures say that the party is danger of "not being able to keep the lights on".

The Cormack Foundation is one of the party's biggest donors and over the past 18 years has contributed over $40 million to Liberal branches across Australia – it has recently made payments to Family First and the Liberal Democrats for the first time.

The foundation has eight listed shareholders, who are also the company's directors. They include Mr Morgan, Rupert Murdoch's brother-in-law John Calvert-Jones and former ANZ chairman Charles Goode.

In his December 20 letter to Mr Kroger, Mr Morgan outlines concerns that Mr Kroger's dual role as both party president and the chair of the finance committee is not "in accordance with current good governance practice".

"There are fundamental gaps in the implementation of appropriate governance provisions which would be in accordance with almost universal modern practice for any significant public institution," Mr Morgan's letter states.