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Danson wins go-ahead

10th September 1998
Page 25
Page 25, 10th September 1998 — Danson wins go-ahead
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

• A company

a operating without

a licence from April to August • A company a licence from April to August after a sister firm collapsed has won its battle for a licence in its own right.

The bid for a seven-vehicle licence by Danson (Midlands) had been adjourned while West Midland Traffic Commissioner David Dixon considered whether the company was fit to hold a licence after it had admitted to illegal operation (CM 27 Aug-2 Sept).

Although Dixon had some misgivings about the repute of Liam McG illoway—a director of Birmingham-based Danson (Midlands) who held a similar post at the failed company, Bancom—he was prepared to give him the benefit of the doubt. But he wants to see accounts each year and to be advised if the overdraft facility is reduced or withdrawn. Dixon said several issues had concerned him. First, there was the liquidation of Danson Ltd in 1990 with debts of £113,000. Then there was the liquidation this year of Bancom, which owed £172,000. When the Bancom licence came up for review in February, Mci1illoway had signed the checklist without indicating financial difficulties.

There was the failure to notify the liquidation of Bancom to the Traffic Area at the time.

There was the operation of vehicles without a licence between April and August and for a number of years there had been the use of an unauthorised operating centre at Tyburn Road.

McGilloway said that in February he had hoped to be able to pull Bancom through. He was aware he needed a licence to operate and he had made a fresh application as soon as he could.

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Locations: Birmingham

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