+- Austinsevenfriends (https://www.austinsevenfriends.co.uk/forum)
+-- Forum: Austin Seven Friends Forum (https://www.austinsevenfriends.co.uk/forum/forumdisplay.php?fid=1)
+--- Forum: Forum chat... (https://www.austinsevenfriends.co.uk/forum/forumdisplay.php?fid=14)
+--- Thread: The Austin Motor Co ( 1914) Ltd?? (/showthread.php?tid=4538)
The Austin Motor Co ( 1914) Ltd?? - Bob Olive - 16-06-2020
One for the historians - why was a 'new' company formed in 1914? Was it to separate 'war' work - planes, armoured cars, munitions etc., - from normal car production? Creating a new company in this way (original name, but differentiated from the original by the inclusion of the year in brackets, was often used as a device to protect the original company's assets and affairs from being taken over by creditors. Be nice to know...
Thanks
RE: The Austin Motor Co ( 1914) Ltd?? - Mike Costigan - 16-06-2020
Prior to 1913 the the Austin Motor Company had been a private company; The Austin Motor Company (1914) Limited was the title given to the new public company. The original directors, Austin, Du Cros and Kayser, received a total of £15,459 for the original company, and in addition each received 250 preference shares and 1 ordinary share in the new company. In addition, Herbert Austin received a five-year contract as chairman and managing director with an annual salary of £3,500 plus 2.5% of the net profits.
RE: The Austin Motor Co ( 1914) Ltd?? - Bob Olive - 16-06-2020
Thank you, that explains it, and I am relieved to know that, at that stage at least, they were not heading for insolvency.
RE: The Austin Motor Co ( 1914) Ltd?? - Tony Press - 16-06-2020
The appointment of receivers introduced Herbert to a brilliant engineer and an excellent accountant - this together with the Austin Seven turned the company around to a better future.
The insolvency was a blessing in disguise !