To Appeal Or Not to Appeal? Liquidators Could Face Personal Costs Orders

In Short

The Situation: Should liquidators be personally liable for the costs of unsuccessful appeals, without an entitlement to reimbursement by the company or its creditors in relation to those costs?

The Conclusion: The general rule providing a liquidator immunity from personal costs orders and entitling a liquidator to be indemnified from the assets of the company for their own costs, and for the costs of the other party, does not apply when a liquidator initiates an unsuccessful appeal.

Looking Ahead: Liquidators should be conscious that when commencing an appeal, they bear the risk of a personal cost order, without recourse to an indemnity over the assets of the company, if the appeal is unsuccessful.