Costs

It was settled law that, in considering whether an application for security was being used oppressively to stifle a genuine claim, the court had to be satisfied that, in all the circumstances, it was probable that the claim would be stifled. The court should consider, not only whether a claimant company could provide security out of its own resources to continue the litigation, but also whether it could raise the amount needed from outside sources, from, for example: directors, shareholders, or other backers or interested persons, including creditors. In all but the most unusual cases, the burden would lie on the claimant company to show that, apart from the question as to whether the company's own means were sufficient to meet an order for security, there would be no prospect of funds being available and forthcoming from any outside source.