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Haulier learns a lesson

6th August 1992, Page 15
6th August 1992
Page 15
Page 15, 6th August 1992 — Haulier learns a lesson
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Which of the following most accurately describes the problem?

• Bootle haulier John Pythian, who was associated with the failed company Mottram & Crosby, has succeeded in obtaining a licence for his new company, Ellagrange, trading as AD Haulage. Ellagrange had applied to North Western licensing

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Authority Martin Albu for a new standard national licence for 10 vehicles and 12 trailers. Pythian said he was in charge of the traffic operations at Mottram & Crosby, but he was not the transport manager. He was a minor shareholder in the company. The majority of shares were held by Mr & Mrs Mottram. The decision to cease trading and put the company in the hands of the liquidator had been made basically by the majority shareholder, Mr Mottram. In October 1990 Mottram & Crosby entered into a contract with P&O. Being realistic, it was just too big for the company to handle. Returning from holiday in September 1991, Mr Mottram told him he was winding the company up.

Pythian said he then applied and was granted an interim licence as a sole trader, but it had always been his intention to form a limited company. Ellagrange was involved in mid to local distance haulage, and he was now fully aware of what could happen if he overstretched himself. Monthly accounts were produced for Lombard Natwest and it chases all his debts.

Albu said he had to consider Ellagrange's good repute, due to Pythian's association with Mottram & Crosby.

However, it seemed from what he had been told Pythian was not fully responsible for the problems, and he seemed to have learnt a lesson from that experience.