Where a corporate plaintiff has a net asset deficiency and its directors/beneficiaries lack financial capacity and do not offer to provide security, the threshold for ordering security for costs is met. The plaintiff bears the onus of establishing that the defendant's conduct caused or materially contributed to its inability to meet a costs order, and must adduce evidence of its financial position before the dealings complained of. Delay in bringing a security application may result in the order being confined to future costs only.
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