(1) WHAT HAPPENED, UP TO ALLEN'S DEATH?
- how did the company debt build up, over the years? No information on when the fraud began or to its extent
- how is the debt reflected in the published accounts, if at all? It is avoided in the published accounts by including only the Management fees as the business of the company. Everything else is hidden.
- what were the auditors' role and comments? Small companies are not required to have their accounts audited although many do so, as a requirement, for example, to tender for public contracts. Therefore the statements of the directors are used to compile the accounts, with an endorsement of accountancy firms to that effect. The accountancy firm associated with the (late) filing of Ownerships accounts have shown no interest in registering the changes of directors.

- can you confirm that the Company specifically acted throughout its existence to avoid it having any claim on any part of any of the boats in the management scheme Historic information not covered It certainly has no wish or desire to make a claim on the boats. In answer to a question about whether, under the Agreement, the holding of the boats ‘in trust’ created a theoretical interest, AT thought that it might, and that to guard against any preferential claim from receivers / liquidators it would be worthwhile to pass to owners original documentation from boatbuilders

- … and that the Company all times (currently and historically) viewed new and bought-back shares as the property of the investors in the Free Services Scheme on whose behalf and as agent for them, it had acquired such new and buyback shares The presentation of the accounts, effectively excluding all the FSS liabilities was considered by AT to be wholly inappropriate, and that they should have been included, hence that the buyback shares were indeed assets of the Company.

- can you confirm that the boat Sinking Funds have never formed part of the Company accounts (nor in its balance sheet)? As above they are not in the accounts currently

- … and hence, or otherwise, that Boat Sinking Funds (and Boat Engine Reserve and similar Accounts) are dealt with, and have always been dealt with as Client Accounts Whether or not they were Allen used them for his own projects
- what were the company's internal controls to check for and avoid misuse of Client Funds? Not covered

- When and on whose authority were Boat Sinking Funds combined into a single account, and when and by what means were Owners informed of this? Not covered

- Was Allen the sole Director, and from when did this occur? Not specifically covered Mentioned that Joan Lindeman took on the Company Secretary and Director job at the beginning of Ownerships existence as a favour to an old friend on the assurance that this was simply a formal role to satisfy the requirement then to have at least two directors. This is no longer the case.

(2) THE INVESTIGATION, FROM ALLEN'S DEATH TO NOW
- when did the Company become insolvent? Not covered
- to what extent was the Company trading while insolvent? Not covered
- what and when were there misrepresentations to investors? (investment schemes, new boat purchasers) Not covered

- … in particular which investors (Free Services Scheme, Marinas) invested in their respective funds when the assets of the fund did not meet its then-current liabilities Not covered
- In which accounting years, by examining bank returns and accounting entries, has money been transferred out of Client Accounts other than to pay for work on the boats or expenditure similarly authorised by the Owners... Not covered

- … who signed such cheques Not covered

- Who signed the 2008 Accounts at Companies House (deposited November2009); ppAFMatthews Not covered

- What consultations have there been with the with Insolvency service? AT has notified them

- … and with the Fraud Office or the Metropolitan Police? AT has notified them

- Will you publish the agenda, notes, list of those attending, and any other relevant documents relating to the briefing for Ownerships Staff about Ownerships' then current financial situation, arranged by Allen on or about 17May 2006 Not covered

(3) THE CURRENT OWNERSHIPS SITUATION
- What is the deficit in the Investment schemes (Free Services, Marina/Fradley)? Accounts have no cash. 554 paid into Free Services Scheme and 76 into Marina/Fradley schemes giving a total deficit of the £1.8m. There is also £266k of individual loans and £200k from 421 owners who bought the right to have their shares bought back, and £170k overdraft owed to the bank. If all the buyback owners were to require their shares top be bought, the total liability of the company would be of the order of £4.5m
- What is the Deficit in Sinking Funds (client accounts)? Account has no cash No estimate of how much should have been in the accounts

- What is the position of Engine Reserve Accounts and similar client accounts supplemental to Sinking Funds? Implied that these are covered together in the combined Sinking Funds and there is no cash
- What is the position of investments in new boats not yet launched, or not yet started to be built? Questioner given details of combining shareholders in two boats to a single one which is expected to be afloat, and hence a syndicate like all the others

- What are Outstanding Invoices in total? Not covered
- What is the summary for each boat: when will this be available and how? A week and a fortnight were both quoed as times for each boat information to be availabe
- What is your professional advice of Owners' liabilities for works commissioned by Ownerships? Counsel’s opinion has been sought on this, available within a few days

- … specifically what is the jurisdiction covering the contracts? Not covered

- … and what is your professional advice on response to boatyards claiming to have contracted under Marine law? Not covered
- Should every boater be to trained to repel lassoos whenever it passes an irritated boatyard? c
- Bought-back shares: Are you claiming these as an asset of the company? or was the company acting for and on behalf of the FreeServices investors, as in documentation from Allen, and evidenced by their absence in the Annual Accounts? At the current time, the need to pay monthly sinking fund contributions and management fee contributions make them a burden rather than an asset, and the option of selling them to the remaining owners at a nominal fee (£1) will be actively considered.

(4) PROPOSALS FOR THE FUTURE
- What is the range of options/alternatives to winding-up Ownerships? Technical details not covered
- What are the priorities for any remaining funds? (eg extend the collective insurance?) There aren’t any
- How do boat groups decide what to do?... Not covered

- … what is their constitutional position in terms of any implied agreement between the Owners (once the individual agreements with Ownerships cease to exist with the winding-up) Not covered

- … and has each owner a right to insist the liquidation of the partnership (and hence sale of their boat) in the absence of any other (unanimous) agreement? Not covered

- Does OS think it can pass-on or sell the right to manage existing boats, and is it suggesting that boats three-year rolling commitment could, without the boats' specific agreement, be taken over by any other entity? Boats will need to commit to the new company as a deliberative decision. Nothing passed from the old company to the proposed new one
- Will you invite AndrewCooley to present his ideas for a new collective solution? Andrew advised owners as a priority to arrange insurance for their boat
- Will you invite me (PeterScott) to present our independent management options and experiences? Not covered
- Will you arrange for someone from Challenger to explain their experiences in a similar position? Not covered