Following a review of the current insolvency trends relating to the transport and haulage sector, we have provided a commentary on the consequences of failing to adhere to directors’ duties with particular reference to director’s disqualification proceedings.
Insolvencies of logistics companies increased by 20% in 2014 over the previous year, this is a stark reminder of the challenging and competitive nature of the current haulage and logistics sector. Regulation on financial standing set liquid asset requirements for operators, but company directors are still in a constant battle to keep their business trading. The extreme lengths that some directors have been willing to go to in order to ensure the company’s survival has however, resulted in rules being breached and ultimately, disqualification action.
The transport sector has been no exception to the rule, and a number of high profile cases involving haulage and transport service companies have contributed to the overall rise in the number of disqualification orders being made against directors in recent years.