Funds advanced to a company that are consistently recorded in contemporaneous documents as loans will be treated as loans provable in liquidation, notwithstanding that the advances were made in the context of an investment arrangement involving the acquisition of shares. The acquisition of shares as a mechanism to obtain control of a company does not convert loan advances into capital contributions. A liquidator who brings a hopeless appeal against the admission of a proof of debt may be personally liable for indemnity costs.
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