Director’s Obligations and Operator’s Licences

Where a limited company successfully applies for and holds an operator’s licence, that places obligations on the board of directors to ensure that they remain aware of transport compliance within the business. They must also ensure that they are able to identify and/or receive reports of issues in their compliance systems that need director intervention and/or decision making.

Where an operator’s licence is revoked, the Traffic Commissioner has the power to order that the director or directors of the company that held the operator’s licence are to be disqualified from being the directors of a licence-holding company for a specified period of time or indefinitely.

If you are a director of a company that holds an operator’s licence, and would like further advice about your obligations, or if you are concerned about being disqualified as a director, speak to the road transport solicitors at JMW today to find out more about how we can help you and your business. Simply call us on 0345 872 6666, or complete our online enquiry form and a member of the team will give you a call back at a convenient time. 

How JMW Can Help

We can help you implement your responsibilities so that you avoid the scrutiny of the Traffic Commissioner and regulatory action. It is not simply a case of meeting the requirements for an operator’s licence, but also about ensuring that you remain compliant and aware of the changes in the sector.

The team can ensure you can have the correct compliance systems in place, as well as make sure that you remain up to date with the changing rules and regulations that surround the transport sector.

Our solicitors have been helping individuals and businesses make successful applications for operator licences for years, so we are able to preempt and solve issues early to make the process as smooth as possible.

What are a Director’s Obligations?

The Traffic Commissioner considers the board of directors of a company to set the standards for the rest of their employees. Where the company holds an operator’s licence, they are required to ensure that they have - and continue to have throughout the period in which the company holds a licence - sufficient knowledge of transport compliance to exercise the proper oversight.

In some circumstances, the directors of a company will have defined roles within the business, and one will be allocated the role of managing transport compliance. However, even in such circumstances, the whole board may be considered equally culpable for non-compliance.

The message to take from the above is that the directors of a company are required to ensure that their knowledge of transport compliance remains up to date, and that they cannot simply discharge their obligations by, for example, the appointment of a transport manager - although, in many cases, this is still an absolute requirement. 

Examples of Failing to Comply

There are many reasons that a director and their company can attract the attention of the Traffic Commissioner. These include:

• Vehicles being unroadworthy or poorly maintained
• Drivers not taking enough driving or rest breaks, or driving while fatigued
• Drivers falsifying their tachograph records
• Overloaded or insecurely loaded vehicles
• Vehicles being involved in bridge strikes
• Failing to have systems in place to manage and maintain transport operations