A aues ti on o f reout
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A FORMER director of two insolvent transport companies has been granted a standard international operator's licence for one year by South-Eastern Licensing Authority Randall Thornton.
The LA heard that Michael Samuel Howard, of Broadstairs, Kent, intended to operate from Stonar Industrial Estate, at Sandwich, and that he was a former director of Bruce Buzz Ltd and K&M Commercials.
K&M Commercials carried out commercial vehicle repairs and a haulage operation and went into voluntary liquidation because of financial difficulty with its vehicle repairs. Haulage earned a £14,000 profit. The commercial vehicle repair turnover was said to be £60,000, and the haulage turnover £112,000.
Bruce Buzz was granted its 0licence in May 1981, after the K&M liquidation. A winding-up order was made in January 1982, as £63,000 was owed to unsecured creditors, and E48,000 was claimed by directors.
There were three directors. The working capital had been provided by Frederick William Budding, a retired accountant, who had put £15,000 into the business, and was looking for "a rewarding investment". He intended to purchase one third of the shares, but had lost all his investment as a result of the liquidation. Mr Howard said at the public inquiry that he had resigned as a director of Bruce Buzz before the liquidation took place, and his present application was purely his own operation. He had no intention of forming a limited company.
Since the collapse of Bruce Buzz, he had been engaged in repairs and freight forwarding. He had taken over the lease of the operating centre of Bruce Buzz, and also the leasing agreements on some of the company's vehicles. He was planning to transport UK foodstuffs to the Middle East.
He provided the LA with two cheques for work recently carried out totalling £5,000 as evi dance of his financial standing.
The LA said: "Here we have somebody with two liquidated companies behind him owing money to unsecured creditors. He steps free, bringing some of the vehicles with him. Now I ask myself: 'Is this a man of good financial repute?'" in reply, Mr Howard said that he had lost money in the liquidation, but he is capable of earning money as proved by the cheques produced.
"I was not the leading voice in the other companies as there were other directors. If I am not of good repute, why should I be here saying to you that I am prepared to go it alone in my own name and I stand by my convictions. If I could have prevented the liquidations, I would have done so," Mr Howard said.