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NEWS of the WEEK

9th October 1936, Page 32
9th October 1936
Page 32
Page 32, 9th October 1936 — NEWS of the WEEK
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Which of the following most accurately describes the problem?

"The wheels of wealth will be slowed by all difficulties of transport, at whatever points arising, as a carriage is by the roughness of the roads over which it runs."—John Beattie Crozier.

Injunction Sought Against A.R.O.: Merger Investigations Next Week

0 MINOUS developments have, The Commercial Motor is able to reveal, 'occurred in connection with the merger of the Commercial Motor Users Association and Associated Road Operators.

Two members have made application in the Chancery Division of the High Court for an injunction to restrain A.R.O. from parting with any of its assets‘without the approval of members at a general meeting, and to prevent the Association from merging with the C.M.U.A., contrary (it -is alleged) to the Articles of Association of A.R.O. The two members, who are well known to road-transport operators, are seeking a declaration from the Court that the merger is ultra vires the A.R.O. and contrary to that Association's Articles.

These facts were elicited by a representative of The Commercial Motor, who, on Wednesday, also visited the Chancery Division of the Court. Our representative then studied the Articles of Association of the A.R.O. at the official records office.

Article 45 refers to the general powers of the National Council of the Association, Article 78 states that the National Council may arrange for " the union, affiliation,

alliance or incorporation with the Association of any society with kindred objects."

Another development is the calling of an extraordinary general meeting of A.R.O. members at the Grand Hotel, Birmingham, on October 13, at 7 p.m. The object of tliis meeting appears to be to secure further information before the proposed amalgamation is finally completed.

The following matters are to be considered :—(1) The terms of the merger ; (2) the terms of employment of the officials to be appointed and, in particular, those of Mr. F. G. Bristow, Mr. R. W. Sewill and Major the Hon. Eric Long ; (3) the failure to communicate to members of the Association full information as to the present fmancial. positions of the two organizations and the full terms of the proposed merger in sufficient time to allovir of exhaustive discussion by the various local interests and members generally ; (4) the decision of the National Council of A.R.O. to put the merger into operation without consultation with, and a vote of, all members.

Resolutions will, of course, be passed in connection with these matters, but, if thought fit, the following in particular :—" That the proposed merger with.the Commercial Motor Users Association be not put into operation until not less than three weeks have elapsed after full particulars thereof have been disclosed to all members of this Association and until all members have had an opportunity of voting for or against the terms of such or any other merger."

The notice of this meeting is contained in a memorandum to members, issued over the signature of Mr. Clifford H. Gale, general secretary, on October 2. .

The position with regard to the merger is, therefore, somewhat confusing, and will not be cleared up until the High Court has given its decision in connection with the application for an injunction.


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