Where a limited company is the plaintiff in an action or other legal proceedings, a judge having jurisdiction in the matter may, if it appears by credible testimony that there is reason to believe that the company may be unable to pay the costs of the defendant if successful in his defence, require sufficient security to be given for those costs and may stay all proceedings until the security is given.
Companies and Allied Matters Act 2020 · Part B · Chapter 29
Section 736 Costs in actions by certain limited companies
Cite as: Companies and Allied Matters Act 2020, section 736
What this section means
From the guide: How CAMA 2020 applies: existing companies, court powers, offences and relief for officers
- A court can require security for costs and stay proceedings where a limited company plaintiff may be unable to pay the defendant’s costs (section 736).
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Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.