Treloar Constructions Pty Ltd v McMillan

In *Treloar Constructions Pty Ltd v McMillan*, the appellant company sought to appeal a decision, and the respondent applied for security for costs of the appeal. The respondent also sought a stay of execution and enforcement of existing costs orders made against the appellant.

The primary legal issues before the Court were whether there was reason to believe the appellant company would be unable to pay the costs of the appeal, thereby justifying an order for security for costs under section 1335(1) of the *Corporations Act 2001* (Cth), and whether a stay of execution of the costs orders should be granted, and if so, on what conditions.

The Court reasoned that the appellant's lack of property, low share capital, and absence of financial records in evidence supported the existence of credible testimony that the company might be unable to pay the costs of the appeal. Consequently, the Court ordered the appellant to provide security for the respondent's costs of the appeal in the sum of $75,000, either by payment into court or an irrevocable bank guarantee. Furthermore, the Court granted a stay of execution and enforcement of the existing costs orders, conditional upon the appellant paying $225,000 into a joint controlled monies account, until seven days after judgment on the appeal or further order.