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The end of the road: The hard line approach to director disqualification

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.

Read the full article on our dedicated road haulage website»

This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

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Gavin Jones

Partner - Head of Business Restructuring

I act for banks and asset based lenders, insolvency accountants and boards of directors in relation to both formal and informal insolvency procedures, turnaround and restructuring and in relation to security issues.