The threshold test for security for costs under UCPR r 42.21(1)(d) and Corporations Act s 1335(1) requires the applicant to establish 'reason to believe' the corporation 'will be' unable to pay costs — a conclusion that there is merely a 'risk' of inability is insufficient. The legal burden remains on the applicant throughout, though the respondent may bear an evidentiary burden to raise particular issues. Appellate review of the threshold determination is governed by House v The King principles, not the Warren v Coombes correctness standard.
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