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Bond required before initiating or defending legal action.

Bond required before initiating or defending legal action.

Postby Millbrook2 » Sat May 27, 2017 4:19 pm

A friend is currently subject to an investigatory hearing potentially leading to dismissal. She is both a Director and employee.

The company posted a loss last year.

She consulted a 'corporate lawyer' about issues relating to her directorship.

She says that the lawyer said that because of the loss in the P&L account that the company would have to put up a bond of £50k in order to defend an unfair dismissal and sex discrimination claim.

Googling bonds and legal action has produced nothing. Can anyone throw any light on this please.
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Re: Bond required before initiating or defending legal actio

Postby atticus » Sat May 27, 2017 4:55 pm

Oh dear. Poor advice. A company in such financial circumstances may be ordered to provide security for costs where it is pursuing a claim. This company is defending.
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Re: Bond required before initiating or defending legal actio

Postby Millbrook2 » Sat May 27, 2017 5:00 pm

Thank you. Would it make a difference if the claim against the company was about the directors contract and the claim was in contract law and not an IT.
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Re: Bond required before initiating or defending legal actio

Postby atticus » Sat May 27, 2017 6:06 pm

No.

The claim is against the company, not by the company.
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