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Phoenix company will not fly

12th July 2007, Page 35
12th July 2007
Page 35
Page 35, 12th July 2007 — Phoenix company will not fly
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Which of the following most accurately describes the problem?

A BID FOR A NEW international licence for six vehicles and six trailers by Manchester-based W Kelly & 13 Cassidy was turned down after North-Western Deputy Traffic Commissioner Mark Hinchliffe concluded it was a phoenix company.

The directors of the company were listed as Sandra Hargreaves and Ronald Thomas — the Deputy TC noted that the company name was strikingly similar to W Kelly & P Cassidy, run by Peter Cassidy and William Kelly.Their licence had been revoked on 14 December 2006 when the partners were disqualified from holding an 0-licence for 12 months. This followed a number of prohibitions, the use of a vehicle without licence authorisation, the use of a prohibited vehicle and the long-term lack of an effective transport manager.

Bank statements and accounts produced at the time were in the name of William Kelly and Ronald Thomas, trading as B Cassidy Haulage:Thomas and Kelly had become directors of the limited company in September 2003. Kelly had resigned on 15 December, the day after his disqualification. The licence application had been made the next day with Thomas shown as the sole director.

The proposed transport manager, Graham Allinson, who had been proposed to take over at the December public inquiry, had since withdrawn.

On receipt of the call-up le tter,Thomas had written an -enraged letter" .saying the information contained in it had nothing to do with him.That was a nonsensical thing to say, the DTC remarked.

He concluded that this was clearly a phoenix company: Kelly had attempted to continue the work of the previous company from the same address, with all the problems that company had presented.


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