127. Payment of preliminary costs, etc.

Any person (other than the company itself or the liquidator of the company), on whose application any winding up order is made, must at the person’s own cost prosecute all proceedings in the winding up until a liquidator has been appointed under this Part.

The liquidator must, unless the Court orders otherwise, reimburse the applicant out of the assets of the company the costs incurred by the applicant in any such proceedings (whether assessed or agreed).

Where the company has no assets or has insufficient assets, and in the opinion of the Minister any fraud has been committed by any person in the promotion or formation of the company, or by any officer of the company in relation to the company since the formation of the company, the costs mentioned in subsection (2) or so much of those costs as are not so reimbursed may, with the approval in writing of the Minister, to an extent specified by the Minister but not in any case exceeding $3,000, be reimbursed to the applicant out of moneys provided by Parliament for the purpose.

Where any winding up order is made upon the application of the company or the liquidator of the company, the costs incurred must, subject to any order of the Court, be paid out of assets of the company in like manner as if those costs were the costs of any other applicant.