What is the test for requiring a company to provide security for costs?
Yukon, Canada
The following excerpt is from Inukshuk v. 413152 B.C. Ltd., 2002 YKSC 26 (CanLII):
Pearson v. Naydler, [1977] 3 All E.R. 531 (Ch D) states as follows: The basic rule that a natural person who sues will not be ordered to give security for costs, however poor he is, is ancient and well-established. … `the general rule is that poverty is no bar to a litigant’. … In the case of a limited company, there is no basic rule conferring immunity from any liability to give security for costs. The basic rule is the opposite …
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