LIQUIDATION OF THE MIDLAND COATING COMPANY

Early day motion 213, tabled 20 January 1999 by Terry Lewis (Labour). Signed by 14 members.

That this House congratulates the Manchester Evening News on its success in exposing the business malpractices of the Midland Coating Company of Sheepscar Court, Leeds; believes that elderly houseowners, exploited by that company's dubious sales methods, will be relieved by this exposure; is, nonetheless, concerned that following the liquidation of the company on 23rd December 1998, the directors have re-established the business, at the same address, under a new name, Raincheck; draws attention to the fact that Mr Chris Woodhead who, at the Midland Coating creditors meeting, was identified by former employees as the key company decision maker, though not listed as a director; understands that the liquidator expressed the view that Mr Woodhead was likely to be a shadow director to Ms Melanie Archer, named as the sole director in the proceedings; believes this to represent a worrying loophole in company law which allows control without accountability; and, therefore, draws attention to the need to consider appropriate measures to safeguard the interests of consumers in such circumstances.

Signatures by party: Labour 13, Liberal Democrat 1.