Friday, April 30, 2010

Road Haulage Association To Toughen Application Rules

Directors To Be Scrutinised For Proper Conduct
Shipping News Feature

UK – The UK’s Road Haulage Association (RHA) has announced that they now intend to enforce much more rigorous checks on transport companies that are seeking membership of the organisation if directors in those companies had previously been declared insolvent.

The problem of ‘phoenix’ operators, who liquidate one day and then rapidly restart freight transport companies, has long been a problem for the industry. But the recent economic problems, which have seen many solid members of the road haulage community forced into liquidation, has made it all the easier for the cowboys to hide their identities.

Now the RHA will require would-be members to provide evidence of good practice before their application can be considered. This would include explaining the insolvency, including previous arrangements with creditors and the disposal of any assets or transfer of liabilities prior to an insolvency practitioner being appointed.

“This move by the RHA Board is excellent news for the industry as a whole and the Association in particular”, said the RHA’s Chief Executive, Geoff Dunning.

“This new rule of membership will be a welcome addition to existing members and will provide incentive for others to become a member of the only UK trade body dedicated to the needs of professional road hauliers.”

In a statement on the RHA board’s new policy, the organisation said though they had every sympathy with those have been forced out of business through no fault of their own of even greater concern was the rise in instances of companies going bankrupt one day then restarting, sometimes as soon as the following day, with a similar company name and some or all of the directors re-instated.