Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 02 MAY 2007

Obtaining Security For Costs: Piercing That Corporate Veil

Fenwick Elliott LLP
Fenwick Elliott LLP
Contributor
Fenwick Elliott LLP

Fenwick Elliott LLP

Fenwick Elliott provides a comprehensive range of legal services on every aspect of the...

View firm profile
Explore more from Fenwick Elliott LLP

Security for costs can be viewed in two ways. Either it provides some degree of costs protection to those faced by claims from apparently impecunious companies or it is a device wielded against smaller companies designed to stifle genuine claims.

United KingdomReal Estate and Construction
Jeremy Glover
Jeremy Glover
Author LinkedIn connections

Security for costs can be viewed in two ways. Either it provides some degree of costs protection to those faced by claims from apparently impecunious companies or it is a device wielded against smaller companies designed to stifle genuine claims. Judge Coulson in the case of William Newman t/a Newman Associates v. Wenden Properties Limited & Anr [2007] EWHC 336 (TCC) was recently faced with this problem when dealing with an application for security for costs against a company with no assets but apparently linked to individuals with sufficient wealth to provide the security sought.

The starting point for application for security for costs can be found in section 726(1) of the Companies Act 1985 which provides that:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Renters’ Rights Act Update: Key Developments For Landlords

The UK Government has unveiled the next phase of the Renters' Rights Act 2025, introducing a mandatory private rented sector database launching December 2026 and transferring rent increase dispute resolution from tribunals to the Valuation Office Agency. These reforms will fundamentally reshape compliance obligations for landlords across England, requiring registration of all rental properties with annual fees and updated enforcement mechanisms.
GlobalReal Estate and Construction
Bates Wells
Bates Wells
Article

Selling A Tenanted Property: How Ground 1A Works Under The Renters’ Rights Act

Section 21 has been abolished for new possession action from 1 May 2026, but landlords who need to sell with vacant possession still have a route. Ground 1A of the amended Housing Act 1988 allows a landlord to recover possession where a genuine sale is intended, but it comes with a four-month notice period, restrictions on reletting and remarketing, and potentially significant penalties for misuse.
United KingdomReal Estate and Construction
Barnes Law
Barnes Law
Article

The Proposed Heathrow Third Runway: What Residents Need To Know About Property Impacts, Compensation And Reform

The prospect of a third runway at Heathrow Airport has resurfaced, bringing uncertainty to communities across West London and the Thames Valley about homes, property values and future planning. This guide examines how the compensation framework operates for affected homeowners, identifies critical gaps in protection during the years between policy approval and construction, and explains why reform is needed to address the human and financial costs of prolonged infrastructure uncertainty.
United KingdomReal Estate and Construction
Hugh James
Hugh James
Article

The Renters' Rights Act Private Rented Sector Database Is On The Way: What Landlords Need To Know

The UK Government has announced the second phase of the Renters' Rights Act, introducing a mandatory Private Rented Sector Database that will roll out region-by-region starting in the West Midlands in December 2026. Landlords across England will face registration requirements, annual fees of £65 per property, and potential penalties of up to £40,000 for non-compliance, fundamentally changing how the private rental sector operates.
United KingdomReal Estate and Construction
Blacks
Blacks
Article

Renters' Rights Act 2025: What The Latest Government Announcement Means For You

The Renters' Rights Act 2025 introduces sweeping changes to the UK rental market, including a mandatory national property registration system and a new process for handling rent disputes. Landlords face strict deadlines and significant penalties for non-compliance, while the government promises faster resolution of tenant challenges to rent increases.
United KingdomReal Estate and Construction
Womble Bond Dickinson (UK) LLP
Womble Bond Dickinson (UK) LLP
Article

The PRS Database Is Coming: What Landlords And Investors Need To Know

The UK Government has confirmed the operational framework for its new national rental property registration service, requiring landlords to register eligible private rented sector properties across England from December 2026. With registration costs of £65 per property annually and strict compliance deadlines varying by region, institutional investors and portfolio operators face significant data management and governance challenges. The rollout introduces ongoing reporting obligations that extend far
United KingdomReal Estate and Construction
Gowling WLG
Gowling WLG
Article

Referring Disputes To An Ad Hoc DAB Under The FIDIC Form

When a Dispute Adjudication Board declines jurisdiction over referred disputes under FIDIC contracts, can parties proceed directly to arbitration? This Singapore High Court case examines the mechanics of ad hoc DAB appointments and explores whether pre-arbitral procedural objections constitute matters of jurisdiction or admissibility in international construction arbitration.
SingaporeLitigation, Mediation & Arbitration
Fenwick Elliott LLP
Fenwick Elliott LLP
Article

“PAS The Time” By Reading The Updated PAS 9980 Guidance On How To Conduct Fire Risk Appraisals Of External Walls

The British Standards Institution has released the second edition of PAS 9980, a comprehensive code of practice for conducting fire risk appraisals of external walls in multi-storey residential buildings. This updated guidance introduces a refined four-band risk assessment system and provides clearer methodology for determining when buildings require formal fire risk appraisals, potentially reducing unnecessary and costly remediation works. With the government planning to legally mandate PAS 9980 compliance
United KingdomReal Estate and Construction
Fenwick Elliott LLP
Fenwick Elliott LLP
Article

Coventry & Warwickshire Development Partnership LLP v Avison Young (UK) Ltd

An adjudicator awarded nearly £9 million in a construction dispute, but the losing party challenged the enforcement on grounds of inadequate reasoning and procedural unfairness. The court examined whether the adjudicator provided sufficient reasons for the decision and whether there was a breach of natural justice when considering third-party assessment documents without proper notice to the parties.
United KingdomLitigation, Mediation & Arbitration
Fenwick Elliott LLP
Fenwick Elliott LLP