What is the test for obtaining a winding-up petition under Rule 56 of the Rules of Civil Procedure?
British Columbia, Canada
The following excerpt is from Pearlman v. Atlantic Trading Company, 2010 BCCA 611 (CanLII):
First the court must assess the financial means of the applicant. The financial means test for purposes of Rule 56 has been found to mean that the financial position of the applicant is such that “requiring him to pay the fees would deprive him of the necessaries of life or effectively deny him access to the courts”: Ancheta v. Ready, 2003 BCCA 374 at para 7.
The second factor the court must consider is the merits of the appeal. Indigent status will not be granted in appeals that are bound to fail or where there is no reasonable basis for an appeal: Kohlmaier v. Campbell, 2003 BCCA 61 at para 5.
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