Bankrupt's 0-licence
Page 28
If you've noticed an error in this article please click here to report it so we can fix it.
If the holder of a standard international Operator's Licence goes bankrupt does his licence automatically end?
No. But he must notify the Licensing Authority of the bankruptcy and the LA will then take steps to revoke the licence.
Regulation 7 of the Goods Vehicles (Operators' Licences, Qualifications and Fees) Regulations 1984 states that, when granting a licence, an LA must attach a condition that the holder informs the LA of any event which could affect the satisfaction, by the holder, of the requirements of good repute, professional competence and appropriate financial standing. The notice should be given within 28 days of the event.
The condition is to be treated as attached under Section 66 of the Transport Act 1968 which means that failure to comply with the condition can result in a fine of up to £1,000 and could be grounds for revoking the licence.
Bankruptcy is also grounds for revoking a licence, under Section 69(1)(d), and because it amounts to a material change in the licence holder's circumstances, under Section 69(1)(e).
But the LA's primary course of action would be to revoke the licence under Regulation 9 of the above regulations, which states he must revoke a standard licence if it appears to him that the requirement for appropriate financial standing is no longer satisfied.