The Austin Motor Co ( 1914) Ltd??

[Bob Olive]

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

[Mike Costigan]

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.

[Bob Olive]

Thank you, that explains it, and I am relieved to know that, at that stage at least, they were not heading for insolvency.

[Tony Press]

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 !