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Park Logistics - Creating supply Chain Solutions

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Company that failed to demonstrate financial standing loses appeal

  • 02 April 2014
  • By Roger Brown

Hughes Bros Construction, has lost its appeal against its O-licence application rejection on the basis of lack of financial standing.

At a hearing in London in February, Upper Judge Mark Hinchliffe considered the October 2013 decision of Kevin Rooney, North East TC, to refuse the firm’s application for three vehicles because it had not demonstrated sufficient resources to meet its vehicle maintenance commitments.

In July 2013 Gary Hughes applied for a restricted O-licence authorising three vehicles and two trailers. Online bank statements accompanying the application, failed to show the name of the account holder.

Several attempts were made by the TC’s office to obtain the information but to no avail. Eventually the office received statements relating to a personal account held by Gary Hughes. They showed receipts and payments from Hughes Bros Construction, demonstrating the company had a bank account of its own.

Judge Hinchcliffe concluded: “It is basic company law that a limited company is a distinct legal entity from its shareholders or directors, but the only bank statements submitted to the TC’s office related to the personal financial resources of Mr Hughes.”

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Article source: http://www.commercialmotor.com:80/latest-news/company-that-failed-to-demonstrate-financial-standing-loses-appeal