Good repute after cheque problems
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• A haulage a/. firm which had 20
cheques for vehicle excise duty dishonoured was still of good repute, West Midland Deputy Licensing Authority Alan Cattell has ruled. He took no action against MJ Parry & Son.
Martin Jones, for the company, which is authorised to operate 20 vehicles and 45 trailers, said there had been 15 months of financial difficulty. Management accounts and the last audited accounts for the period ended 30 September 1990 showed an operating loss. However, the company was not insolvent on a day-to-day basis and the last management accounts showed an operating profit.
In March 1990 it had become evident that £100,000 was missing, said Jones. In addition, a major customer extended its credit payments from two to five months. At no stage was any cheque written with the belief that it would not clear.
Cheques that were re-presented were cleared. He maintained that the company was now trading profitably.
Director Richard Parry said that following an investigation into the missing funds, evidence confirmed the involvement of his brother. He was dismissed from his directorship and civil proceedings were being taken against him.
Company secretary and accountant Christopher Hill said that the bank was satisfied with the company's monthly management accounts, It was solvent and capable of paying debts as they fell due.