Section 632 - Power to require limited company to give security for costs. - Companies Act, 1956

Legal proceedings Power to require limited company to give security for costs. 632. Where a limited company is plaintiff or petitioner in any suit or other legal proceeding, any Court [1] [or Tribunal] having jurisdiction in the matter may, if there is reason to believe that the company will be unable to pay the costs of the defendant if he is successful in his defence, require sufficient security to be given for those costs, and may stay all proceedings until the security is given. ----------------------------------------- Notes:- [1] Inserted by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified.