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Boss of failed firm continued to operate

21st June 2012, Page 12
21st June 2012
Page 12
Page 12, 21st June 2012 — Boss of failed firm continued to operate
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Which of the following most accurately describes the problem?

Director loses repute and is banned from holding a licence for a year after failing to attend three public inquiries

By Patric Cunnane

AN OPERATOR WHO continued to run vehicles on an O-licence belonging to his liquidated company has been banned from holding or applying for an O-licence for one year.

Gary Shingler, director of Midland Packaging and Finishing, failed to attend a public inquiry (PI) called by Nick Jones, traffic commissioner (TC) for the West Midland traffic area. It was the third time the PI had been convened.

In December Shingler’s representative had asked for an adjournment because of his holiday plans; in February the TC was told he had a road accident on the way to the hearing, and in May Shingler asked that the TC deal with the case in his absence.

“I am unimpressed by the steps taken by Shingler to avoid me,” said the TC. “He could attend but he has opted to deal with business elsewhere without explaining what that business is.” The TC heard that Midland Packaging and Finishing received a standard O-licence in 2001. Shingler was a director from the beginning, and Lee Daykin was a director from May 2001 to August 2007. The company went into voluntary creditor’s liquidation in December 2007 and was dissolved in July 2009.

However, vehicles were specified on the licence in August last year, a prohibition was issued in September and a continuation licence fee paid in October. Shingler and Daykin were also involved with Midland Premier Freight – its licence was revoked in May 2011 due to a lack of financial standing.

In finding that Shingler had lost his repute the TC said: “Shingler continued to operate, knowing that he did not have authority to do so.” He added that Shingler was not someone he could trust to ensure future compliance.

Daykin attended the May PI and asked the TC to accept he was naïve and had been denied financial information when he was a director. The TC accepted this, and noted that Daykin had left the company a year before it closed.

He found that Daykin retained his repute and professional competence as a transport manager, although “he came close to losing both”.

How to wind up a TC

Failing to attend three PIs to explain a serious offence is a sure-fire way to risk disqualification.