The case confirms that on an application for security for costs under s 1335 of the Corporations Law, the onus on the applicant to establish the threshold question (inability to pay costs) need not be put as high as requiring the applicant to 'establish' the matter, following FFE Minerals. Where a Master grants leave to re-plead after striking out a statement of claim, that mitigates against a finding of substantial injustice on an application for leave to appeal. Personal guarantees from directors who are themselves exposed to claims from the same creditor and unable to meet the full debt are of limited value in resisting a security for costs order.
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