The Victorian Liberal Party is taking court action over access to a multi-million-dollar fund.

The Cormack Foundation was set up by senior Liberals with $15 million in proceeds from the sale of the 3XY radio station in 1988.

It now holds over $68 million.

The Liberal Party in Victoria has launched legal action over control of the funds.

State president Michael Kroger told the court that the foundation was created to benefit the Liberal Party.

“We made requests for donations, we accepted what they gave us, sometimes unhappily,” he said.

The party maintains that the foundation was established holding the shares in trust for the Liberal Party.

Mr Kroger objected to the Cormack Foundation making donations to other political parties in an effort to defeat the Turnbull Liberal government.

Mr Kroger said the Cormack directors believed they were holding assets for advancing libertarian causes in general.

Lawyers for the Cormack Foundation pointed out that it donated $1.7 million to the Institute of Public Affairs while Mr Kroger was at its helm.

They say this shows he was aware its generosity was not limited to the Liberal Party.

Mr Kroger said the IPA donation was different.

“I don't consider those organisations as hostile to the Liberal Party,” he said.

“They are a free-enterprise-aligned think tank. We are a free-enterprise-aligned party.”

The hearings are expected to continue for several more days.

Former state director Damien Mantach was jailed in 2016 for stealing more than $1.5 million from the party.