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Jones rides again

5th November 1983
Page 18
Page 18, 5th November 1983 — Jones rides again
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Which of the following most accurately describes the problem?

kSEP, a company formed by pie involved with the T. E. es Group of a Oswestry th crashed last year with ssive debts, has been ited a new standard licence 5 vehicles and 10 trailers.

le vehicles are to be based at group's former premises at ckin Heath.

illiam Frank Jones, the corn('s plant manager, said that directors were his wife Mrs . Jones and Mrs Heather !p. He was not a director igh he had been a director of e of the companies in the T. )nes group.

le company was a plant hirer contractor. About 75 per of the work of the vehicles Id be its own and 25 per cent Id be for hire or reward.

iestioned by West Midland nsing Authority Ronald son, Mr Jones said he was a director of D. M. E. ractors but he did not do work for the company. His did not take an active part in unning of Incasep.

ather Kemp said that she Mrs Jones were the sole 9holders. The company had ad trading in April and since it had been substantially in

credit at the bank. The premises were owned by T. E. Jones and the company rented part of them from him. The vehicles would be financed on hire purchase so that they would not eat into the capital and cash flow shown on the balance sheet for June.

Mr Jones had been a director of Incasep when the company was formed. It was never intended that he be an active director. He resigned on July 4. At that stage Mrs Kemp was the company secretary and she was appointed a director.

She had been the company secretary of the T. E. Jones group but she had not been a director or a shareholder.

The directors' loan shown in the balance sheet was capital introduced by Mrs Jones. They have learned from experience and were making sure they did not fall into the same trap as the group. They had a good accountant who was advising them.

The group had gone into liquidation when the bank gave four days' notice that it must reduce its overdraft by 33 per cent, which was impossible. That was one reason why Incasep's financial arrangements were not with the bank.

She agreed she was also a director of Brook Farm, trading as Salop Waste Disposal. She was not an active director of that company.