Good question
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Iwrite with reference to your article on Elar International (CM 13-19 March) and I would like to clarify my involvement.
True I was a founder-director, but I resigned in late February/early March 1996 and thereafter continued as operations manager and company secretary until 15 October 1996.
I was involved with corporate decision making pertaining to the operation of the company and to advise on other aspects when asked.
At no time was I involved with Elar's accounts and I had no mandate at the bank or even dealt with incoming mail except in Mr Ritchie's absence in October 1996.
Some of the owner-drivers who joined Elar were introduced by me on the assumption that they would be paid for the work that they carried out, but unfortunately that was not the case.
The company's cashflow problems did not suddenly occur during October but can be traced back to as early as July.
Operationally the business certainly seemed vibrant and was generating a good customer base. With this in mind and the fact that Elar had factoring facilities from day one, the question has to be asked: "Why didn't Elar pay its bills?"
Mike Bailey, Sandyford, Newcastle-upon-Tyne.