AAT ICAS
Introduction
1. Chic Paints is a large Limited company. Chic Paints is a limited company formerly part of Ashtead PLC. Ashtead PLC had been a long standing manufacturer of everything from bricks to butter.
In 2005 Ashtead PLC decided that its future was no longer viable and therefore decided to change Its business model, over the next few years Ashtead PLC started to sell off or close down those of its subsidiaries that were no longer considered a strategic fit within the organisation.
CPL was put up for sale in 2007, and was subject to a management buyout from its previous owners by five of CPL’s current directors, Greg Pearce, Dave whistler, Ruth Jones, Ahmed Khan and Susan Mather. These five directors have managed the company for many years.
All these five directors have shareholdings in the company
Greg Pearce - Managing Director - 25% Shareholding
Dave Whistler - Finance Director - 25% Shareholding
Ruth Jones - Sales Director - 20% Shareholding
Ahmed Khan - Production Director - 15% Shareholding
Susan Mather - HRM Director - 15% Shareholding
Dave Whistler Joined the company only 6 months ago when he bought Jane Yips 25% equity stake in the business along with Greg Pearce the Managing Director Dave is the joint largest Investor in the business.
Last year, however two of the directors, Ruth Jones and Ahmed Khan had indicated that they wanted to sell their shareholdings in the company and retire.
The other directors have being trying to find new investors who would both buy Ruth and Ahmed’s shares and also have the necessary skills to replace them as functional directors. In July, the directors found to possible replacements Colin Addison and Zhang Wei.
Once the sale was finalised the directors decided to change the direction of the business from general household paint into the specialised paint sector, such as those used for Boats, cars and industrial machinery.
Six years on from the management buyout the company has steadily reduced its
1. Chic Paints is a large Limited company. Chic Paints is a limited company formerly part of Ashtead PLC. Ashtead PLC had been a long standing manufacturer of everything from bricks to butter.
In 2005 Ashtead PLC decided that its future was no longer viable and therefore decided to change Its business model, over the next few years Ashtead PLC started to sell off or close down those of its subsidiaries that were no longer considered a strategic fit within the organisation.
CPL was put up for sale in 2007, and was subject to a management buyout from its previous owners by five of CPL’s current directors, Greg Pearce, Dave whistler, Ruth Jones, Ahmed Khan and Susan Mather. These five directors have managed the company for many years.
All these five directors have shareholdings in the company
Greg Pearce - Managing Director - 25% Shareholding
Dave Whistler - Finance Director - 25% Shareholding
Ruth Jones - Sales Director - 20% Shareholding
Ahmed Khan - Production Director - 15% Shareholding
Susan Mather - HRM Director - 15% Shareholding
Dave Whistler Joined the company only 6 months ago when he bought Jane Yips 25% equity stake in the business along with Greg Pearce the Managing Director Dave is the joint largest Investor in the business.
Last year, however two of the directors, Ruth Jones and Ahmed Khan had indicated that they wanted to sell their shareholdings in the company and retire.
The other directors have being trying to find new investors who would both buy Ruth and Ahmed’s shares and also have the necessary skills to replace them as functional directors. In July, the directors found to possible replacements Colin Addison and Zhang Wei.
Once the sale was finalised the directors decided to change the direction of the business from general household paint into the specialised paint sector, such as those used for Boats, cars and industrial machinery.
Six years on from the management buyout the company has steadily reduced its