Legal Updates

Except in extreme cases a company filing a Court claim will need to deposit a security for the expenses of the defendant

July 3, 2019

A company supplying medical services filed a claim against a supplier of video calls applications that were to be used for the supply of medical services by the company’s doctors to its clients.
The Court obligated the company to deposit a security for the expenses of the defendants as a pre-condition for proceeding with the claim. The corporate veil enables the managers and shareholders the ability to hide behind the veil so that it will not be possible to collect from them expenses, if held against the company. The fact that a company is a “wallet company” all of which income is paid on, emphasizes the requirement for the security for costs. To avoid depositing a guarantee for expenses one need bring material evidence for the economical robustness of the company