—(1) Where a registered society or any of its officers purporting to act on its behalf is plaintiff in any action or other legal proceeding, the court having jurisdiction in the matter may, if it appears by credible testimony that there is reason to believe that the society or the officer will be unable to pay the costs of the defendant if successful in his defence, require sufficient security to be given for those costs and stay all proceedings until the security is given.
(2) Where a society is required to give security for costs under subsection (1) and the amount of the security is not sufficient to pay the costs of the defendant —
the officers of the society who approved the institution of the action or legal proceeding; and
any person who, on subsequently becoming an officer of the society, does not take any reasonable measure for the purpose of seeking the discontinuance of the action or legal proceeding,
shall be jointly and severally liable for any part of the costs awarded against the society which, after deducting the amount of the security, remains unsatisfied after one month from the date the costs became payable.
(3) This section shall apply to any action or legal proceeding whether instituted before or after 10th September 1982.