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1 16 CASE TWO
Page 29
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Haulier faces five-year revocation
PORTLEVEN-BASED KDC Logistics and its directors Kenneth Reid and Douglas Strachan were disqualified from holding or obtaining an 0-licence in any Traffic Area for five years after the company's licence was revoked by the Scottish Traffic Commissioner Joan Aitken.
The TC said Douglas Strachan became a director [of KDC Logistics] in September 2007. Reid disposed of his shares in September 2007. Colin Strachan, Douglas Strachan's father, became the sole shareholder in November 2007. Colin Strachan was currently disqualified from holding an 0-licence for five years, as was his company CDS Forwarding. Those disqualifications followed the breaching of an order for the suspension of CDS's licence.
The TC was told that Reid had been the sole director and had been working as a subcontractor for CDS. The company was not doing very well and it was decided that the Strachans would buy it. It was advised that it was alright if Colin Strachan owned all the shares, but was not a director. Colin Strachan was lending money to the company so that his son and Reid could get going in haulage and he took the shares to secure that loan. The company got all its business from CDS. The three vehicles on the licence were hired, with CDS Forwarding providing one of them.
Asked where they had got the advice that it was alright for his father to own the shares, Douglas Strachan refused to say.
Making the revocation and disqualification orders, the TC said that Reid's company became the means whereby the Strachans sought to re-enter goods vehicle operating. Through the funding of the business, and the provision of a vehicle and all the work for the company, she had no doubt that Cohn Strachan remained the controlling force and had been that force since at least August/ September 2007.