Most companies are established with some specific business purpose in mind – making a product or offering a service, and their names normally reflect the nature of the business they do, or at least, the philosophy of the owner or owners. So we found it interesting when, in our research on a certain British accountant who has been in the news lately, that his name surfaced alongside a couple of peculiarly named companies. We speak specifically of “Shellshock” and “Cockleshell.”
They reminded us of “Pillow Talk,” one of the controversial companies that were used in the takeover of the Belize Telecommunications Limited (BTL).
The “shell” companies mentioned above are linked to Michael Ashcroft’s BB Holdings, and they were formed as international business corporations (IBCs) to invest in other companies – much like Sagis was used to acquire shares in KREM Radio.
Names like Phil Osborne and Phil Johnson – the Belize Bank president who was recently spared of charges related to the Money-Laundering (prevention) Act – crop up under the list of directors. Shellshock is dormant and reports share capital of 3 million pounds. Cockleshell reports capital of US$10,000,000.
The string of companies linked to 60 Market Square is, evidently, endless. Note that instead of people sitting as directors of BTL, cryptic companies with unrecognizable signatories appear as Shire Holdings Limited, Seascape Holdings Limited, Ibis Investments Limited, Scarlet Ventures Limited, and Rocky Reef Ventures Limited.
The Merriam Webster dictionary defines “shell shock” as combat fatigue. Shell companies can be of various types, and we note that while some are formed for specific trading purposes and then left dormant, others are used for white-collar crimes, sometimes believed to be acts of money laundering.
Shellshock and Cockleshell are listed as “strategic investment companies,” for the purpose of investing in other companies.
Interesting information posted on Shellshock’s site states: “An acquisition by Shellshock may constitute a reverse takeover under the AIM Rules. This would require the approval of the shareholders of Shellshock. Shareholders should note that, owing to his controlling shareholding, Lord Ashcroft KCMG could determine the outcome of any such process.”
A reverse takeover happens when “a company acquires a company larger than itself and the acquired company gains control of the smaller company.” (Google definition)
By the way, if you think BEL has been making obscene profits, hear this! BB Holdings, parent company of the Belize Bank, reported on May 15, last Thursday, that it had turned a profit of US$60.4 million for the financial year which ended March 31, 2008. Even as the masses are crying out about hard times, things are certainly looking up for some. BB Holdings’ profits are up 33% from the year before.