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Forgery proceedings no bearing on takeover
Page 57
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SAYS ADVOCATE
• Any proceedings regarding allegations of forgery or uttering false documents made against the drivers of the vendor company were not statutory offences under the Road Traffic Act relative to section 178; that previous conduct could only be taken into account Jnder Section 174(4) and this could not ap3ertain to the purchasing company which had lot yet traded and, therefore, the takeover application under Section 173(1)(c) should be granted.
This was the submission of Mr. J. A. Backlouse in Manchester last week on behalf of Jbique Engineering (Blackpool) Ltd. which las now changed its name to Walsh Trans3ort Services Ltd. and which was applying to ake over the two A licences, authorizing 21 rehicles and a two-vehicle B licence at oesent operated by Joseph Walsh Transport _td. of Darwen. He explained that Hawtin Industries Ltd. had acquired the share capital of Joseph Walsh Transport and appointed Mr. Frank Kerwin, a director of Fred Davis (St. Helens) Ltd. another haulage company within the group, to act as "troubleshooter".
On investigation it was found that inquiries were being made by the Ministry of Transport enforcement section and he had advised new directorship and control for the business, said Mr. Backhouse. The application to take over the business was made on August 27 and to the date of the present hearing no proceedings had actually been taken against the corn pany.
The directors of the new company would be Messrs. Frank and Percy Hawtin of the holding company, Mr. Kerwin, Mr. J. W. Rafferty and Mr. C. R. Cooper of Fred Davis, the latter two being transport manager and accountant of that company respectively, and who would be responsible for the proper running of the new undertaking. It was revealed that all the existing staff would be employed including Mr. Joseph Walsh, but that he would cease to have the same control.
Ten supporting letters from customers were submitted together with figures of earnings. The new company would not, however, have the benefit of one contract A licence which had earned £1,749 in the year ending June 1967 because that contract had now ceased, said Mr. Backhouse.
He urged that a decision be given and submitted that the proceedings against the drivers, which he understood did not include conspiracy, all related to dates outside the six-month period which was the time limit appertaining to the schedule of statutory offences relevant under section 178 of the Act.
The North Western LA, Mr. C. R. Hodgson said he knew a great deal about this case and if proceedings were to be taken he did not wish a technical slip up to be made that would enable possible offenders to escape their responsibilities just because the corn
pany name had been changed and it technically no longer existed. Mr. Backhouse said that, due to the winding-up, the company would be in existence for some time yet.
In view of the pending allegations of false records, the LA wondered whether he could rely on the evidence regarding numbers and types of vehicles proposed to be operated under the applied-for licence. He said he would not adjourn the hearing but would reserve his decision and give it within a few days.