HoltCJ - as a layman, I'd suspect that if it was done to avoid liabilities one could be looking at criminal charges including fraud and/or conversion. The Companies Act 1985 (as amended) also has a few things to say on the subject.
It would also be interesting to see why the auditors resigned - especially as the company is a plc. Were they unable to certify it as a going concern? If so, that lays the directors open to charges of reckless trading, which of course has unlimited personal liability attached.
The CAA's Economic Regulation Group would generally look with great disfavour on persons knowingly involved with a manipulated financial collapse of a British airline - especially when it comes to the issue of an Operating Licence for any successor carrier.
Does anyone know yet whether the company has gone into Administration or Receivership? How much is the total known indebtedness? Who pulled the plug - the Board, or an action by a creditor?
Another question - it will be recalled from one of the many BWA/NJI threads that the person behind NJI claimed that he had bought into and/or was 'taking over' BWA. Is it perhaps the case that instead of BWA, he's actually involved with the new company? Who are the directors listed at Companies House?
For those interested in a definition of the legal term conversion:
From, 89 CJS -Trover and Conversion- Sec. 1 Conversion:
"Conversion is an unauthorized assumption and exercise of the right of ownership over goods or personal chattels [property]
belonging to another, to the alteration of their condition or the exclusion of an owner's rights...Any distinct act of
dominion wrongfully exerted over one's property, in denial of his right, or inconsistent with it."
The definition in Black's Law Dictionary, Electronic Edition, is identical to that above with the addition of this sentence:
"Any unauthorized act which deprives an owner of his property permanently or for an indefinite time."
Black's also defines "Fraudulent conversion":
"Receiving into possession money or property of another and fraudulently withholding, converting, or applying the same to or
for one's own use and benefit, or to use and benefit of any person other than the one to whom the money or property belongs."
In other words, if a contract should have accrued to a company but was diverted to another, then as I understand it, this would be conversion?
Moses Mashombe (aka Freeboot, Freenum, Napoleon, ZambAero etc etc) - you wouldn't know a genuine AOC or OL if it hit you on the head, so stay out of this, please.
[ 14 December 2001: Message edited by: The Guvnor ]