The TC hesitantly gave Mackenzie Bus a period of grace to produce financial evidence, following a confusing pattern of ownership between the Coakley family
The five-vehicle licence held by Motherwell-based Mackenzie Bus No 2 was revoked, and an application for a new two-vehicle licence by Bellshill-based Coakley Brothers (Scotland), trading as ARG Travel, was refused, both on financial grounds by Traffic Commissioner (TC) Joan Aitken, following an Edinburgh Public Inquiry.
In giving Mackenzie Bus, with a six-vehicle licence, a period of grace until 30 November to produce satisfactory financial evidence, the TC said that she did so with some hesitation, for she was not enamoured about the pattern of ownership and control of the Mackenzie Bus Company since 2011 and Mackenzie No 2 since 2012.
If proper and satisfactory evidence of continuing financial standing for the three months ending on that date was not delivered to Edinburgh by no later than noon on 12 December, the licence would be revoked with effect from 23:59 on 19 December. There would be no further period of grace given.
She said that the same persons who were shareholders of Mackenzie No 2 were shareholders of Mackenzie Bus Company. Claire Coakley was the soles director of McKenzie Bus Company. It became apparent that Mackenzie No 2 had not had self-sufficient financial standing. The sole director, Nicolas Le Blond, brother of Claire Coakley, resigned and the shareholders had not replaced him.
The sole director and shareholder of Coakley Brothers (Scotland) was Edward Constantine Coakley. Companies House records show that Mr Coakley had been an officer of six other companies, all since dissolved; Coakley Bus Company, Central Bus Company, Braidhurst Bus Company, YBF Leisure, A to B Recovery, and Allied Coaches Ltd.
Edward Coakley had said that Mackenzie Bus started as CBS in 2011 with Kevin Morrow as director. Kevin Morrow was a family friend and in a relationship with his youngest sister Frances Coakley.
His wife, Claire, who had a degree in HR, came on as a director. She was now the sole Director of Mackenzie Bus. He had not put any money into the business but was allocated shares. Mackenzie Bus is owned by his brother Paul, sister Louise and himself.
Paul, married to Andrea, had lived in Canada with his family since January 2014. Before that he was with Stagecoach in Aberdeen. He holds shares but takes no operational role.
Louise had nothing to do with the company. She was a director to 2013/14, and subsequently there was a family issue in May 2015. He was not a director because of the relationship with his brother and sister who had the majority of the shares. That was why he has applied for his own licence as Coakley Brothers (Scotland), so that he could be director and shareholder.
He would offer the Mackenzie shares back to the family. The trading name ARG Travel he had picked came from their daughters’ initials. The use of ‘Brothers’ in the company name came from a time when he was hoping that he and Paul would operate, but Paul went to Canada. He would rather not continue to trade with the Coakley name and wanted a fresh start.
He wanted to concentrate on rail replacement and private hire work, not local services. The two ‘Mackenzie’ companies were separate. Each had their own payroll and drivers. Claire did not deal with ‘No 2’.
Claire Coakley had said that she ran Mackenzie Bus Co. Apart from Edward Coakley, she had no contact with the shareholders. It was the only bus company in which she was involved though for a short time she was a director of Mackenzie Bus No 2.
