class action, page-38

Hi Spender,

There is one risk that I can identify, along the lines of what you are saying.

That is, if ILF becomes insolvent and cannot indemnify the applicant shareholders in the event of a costs order against them. If ILF cannot pay, it will become insolvent and the costs debt would be upon the shareholders in the action. The shareholders would then have an action against ILF in insovency and a claim on ILF's assets (in priority to other creditors) if there are any assets left.

However, in the FAQ section it says that IMF (the holding company of ILF) GUARANTEES the obligations of ILF. Which means they would pay the costs order if ILF becomes insolvent. I am going to investigate this guarantee further before I sign up.

So, you are correct that the action is not completely absent of all risk.

But these people won't make money unless they act bona fides. But the risk of ILF going insolvent, and the extent of IMF's guarantee needs to be looked at before I am completely satisfied. In reality it looks like a small risk to me.

Apologies if I came across as abusive...
But for having a "death wish" if you sign up - well that's just absurd




Christian