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Takeover deal was 'illegal'

18th November 1966
Page 47
Page 47, 18th November 1966 — Takeover deal was 'illegal'
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

APRIVATELY negotiated takeover of a two

vehicle A-licence business was never completed and irregular arrangements resulted in the vehicles not being used under the licence for more than two years.

The Northern LA, Mr. J. A. T. Hanlon, said this at Newcastle upon Tyne on Monday when William Scott trading as James Todd, Brinksburn Farm, South Shields, applied for a renewal Mr. T. H. Campbell-Wardlaw, for Scott, said Mr. 'Scott had been seriously ill for nearly three years and the business was run by Mrs. Scott.

In August, 1964, she accepted an offer by Mr. J. H. Ord, and his wife Joan, to buy the vehicles and goodwill for £3,000. A private agreement was made for £500 down and £100 a month and quite irregularly it was arranged that the licence should remain in Todd's name until the purchase price was paid. In October, 1964, Mrs. Scott agreed to seek a variation replacing the existing vehicles by new ones, which were the subject of hire purchase agreement between W. H. and J. H. Ord and Lloyds and Scottish Finance Ltd. The registration books were retained by Mrs. Scott who also paid the road fund tax.

In March. 1965. when £1,100 had been paid the instalments ceased and on January 20 1966,a receiving order was made against W. H. and J. H. Ord, trading as W. H. Ord and Son, the vehicles were repossessed and the Scotts left with a licence and no vehicles. If the application was granted two vehicles would be acquired and the business built up again.

Mrs. Isobel Scott said she was unaware the arrangements were illegal. She had been promised work by Transmotors Ltd. a local clearing house.

Mr. D. Patterson, for a number of objectors, said that in the circumstances they would not oppose the grant of one vehicle.

Offered one vehicle, Mrs. Scott said two were essential and asked for an adjournment to call a witness from Transmotors. Advised to accept the offer and then bring evidence to support the second vehicle, she refused and the hearing was adjourned. The two existing authorized vehicles were deleted from the licence.

An application by W. H. Ord and Sons, East Herrington, Sunderland, for variation of an existing B licence by deleting three vehicles not operated since September 1965, and substituting two articulated vehicles was refused for lack of evidence of need. The three authorized vehicles were deleted from the licence.


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