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#1 29-12-12 18:46:39

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Ltd Companies (Driving School) going bust owing lots of money

So what is peoples opinion of the fact that someone can knowingly run a Limited business into the ground, not even telling his own employees until the final day, and thinking they can just set up again the next day without any intention of facing his liabilities??.

I am fully aware of the legal side - so please no "he's not done anything illegal" replies. Should Directors who do this have to face the consequences?  Would this make it less likely to happen?

John

Last edited by chevronjohn (29-12-12 20:36:28)


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29-12-12 18:46:39

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Re: Ltd Companies (Driving School) going bust owing lots of money



#2 29-12-12 19:22:35

Roadmaster
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Registered: 04-03-04
Posts: 5,670

Re: Ltd Companies (Driving School) going bust owing lots of money

It's the employees' fault for not working hard enough.

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#3 29-12-12 20:02:37

MGM
Verified Member
From: Surrey
Registered: 24-10-11
Posts: 861

Re: Ltd Companies (Driving School) going bust owing lots of money

chevronjohn wrote:

So what is peoples opinion of the fact that someone can knowingly run a Limited business into the ground, not even telling his own employees until the final day, and thinking they can just set up again the next day without any intention of facing his liabilities??.

I am fully aware of the legal side - so please no "he's not done anything illegal" replies. Should Directors who do this have to face the consequences?  Would this make it less likely to happen?

John

John

You say you're "fully aware of the legal side".

Have you heard of the Company Directors Disqualification Act 1986? This gives the courts wide powers to prevent the abuses you describe.

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#4 29-12-12 20:26:55

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

MGM wrote:
chevronjohn wrote:

So what is peoples opinion of the fact that someone can knowingly run a Limited business into the ground, not even telling his own employees until the final day, and thinking they can just set up again the next day without any intention of facing his liabilities??.

I am fully aware of the legal side - so please no "he's not done anything illegal" replies. Should Directors who do this have to face the consequences?  Would this make it less likely to happen?

John

John

You say you're "fully aware of the legal side".

Have you heard of the Company Directors Disqualification Act 1986? This gives the courts wide powers to prevent the abuses you describe.

Thanks for your useful input MGM - yes this is an avenue that is being persued by the Liquidators as we speak, wrongful trading.

I will add that the company involved was a Driving School who has Instructors based Nationwide(self employed) and went to the wall with debts of over 200,000 including HMRC.

John


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
www.chevrontraining.co.uk
DSA Customer Test site

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#5 29-12-12 20:29:34

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

Roadmaster wrote:

It's the employees' fault for not working hard enough.

I'm sure they will be grateful for your professional input and will try harder should they become employed again.

John


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
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DSA Customer Test site

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#6 29-12-12 21:05:30

Roadmaster
Verified Member
Registered: 04-03-04
Posts: 5,670

Re: Ltd Companies (Driving School) going bust owing lots of money

Sorry, I was thinking like a rich tory.

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#7 29-12-12 22:19:06

MAZ
Verified Member
From: N/Wales, Cheshire
Registered: 13-06-06
Posts: 838

Re: Ltd Companies (Driving School) going bust owing lots of money

Hi Chevronjohn, it cant be your company because I'm tripping over your trucks and busses all day long, youre too busy. big_smile

The thing is, I suppose, to be a good businessman you need to be devoid of any morals, a business to some is just a tool to make money.

Look at these venture capitalists that took over Comet about a year ago for nothing, they will come out of this with millions simply because they have used their business legal know-how to delay the inevitable and come out the other side being paid very well for nothing. They will no doubt go on to purchase other businesses from administration and do the same.

Is it right? Personally, I would not sleep at night, but then I am not made of the right stuff to become a millionaire.

Should directors face the consequences?, well its likely that if they could not distance themselves from liability, that they would not take the risks that are required to set up what could be successful businesses in the future that could create jobs.

Anyway, name and shame!!
Maz.

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#8 29-12-12 23:30:17

Lady-Hynarc
Verified Member
Registered: 09-04-12
Posts: 649

Re: Ltd Companies (Driving School) going bust owing lots of money

MAZ wrote:

The thing is, I suppose, to be a good businessman you need to be devoid of any morals

I hope this is complete b....cks!  If not, then there is absolutely no hope for me.  Please tell me that there are lots of businessmen out there who have lots of morals...

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#9 30-12-12 18:31:58

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

MAZ wrote:

Hi Chevronjohn, it cant be your company because I'm tripping over your trucks and busses all day long, youre too busy. big_smile

The thing is, I suppose, to be a good businessman you need to be devoid of any morals, a business to some is just a tool to make money.

Look at these venture capitalists that took over Comet about a year ago for nothing, they will come out of this with millions simply because they have used their business legal know-how to delay the inevitable and come out the other side being paid very well for nothing. They will no doubt go on to purchase other businesses from administration and do the same.

Is it right? Personally, I would not sleep at night, but then I am not made of the right stuff to become a millionaire.

Should directors face the consequences?, well its likely that if they could not distance themselves from liability, that they would not take the risks that are required to set up what could be successful businesses in the future that could create jobs.

Anyway, name and shame!!
Maz.

Firstly Maz you're absolutely right it isn't my company smile , I couldn't and wouldn't treat others that way, I pride myself on being honest and professional at what I do.

Your comment about sleeping at night is one that I concur with, we are all in business to make a living, but not necessarily at the hardship of the people who work for you( both employed and self employed).

The fact of the matter with this particular slime ball is that he was payed for all the work others did for him, but rather than pay them, the money seems to have vanished into outer space and he can't even explain what has happened to it. roll

Name and Shame - might just be tempted - depending how the thread goes, and to warn others to avoid him.

John


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
www.chevrontraining.co.uk
DSA Customer Test site

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#10 31-12-12 10:35:35

Yorkshire Lass
Member
Registered: 31-12-12
Posts: 32

Re: Ltd Companies (Driving School) going bust owing lots of money

Hi just came across this site and after reading this post i feel i need to join and ask the question "which firm" ?? I work in leeds and for the last year have done a load of work for a national firm and to be honest i have not been paid since October. If you cant post can you send me a message (can new members get messages) or a e.mail
Thanks Denise

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#11 31-12-12 12:44:44

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

Yorkshire Lass wrote:

Hi just came across this site and after reading this post i feel i need to join and ask the question "which firm" ?? I work in leeds and for the last year have done a load of work for a national firm and to be honest i have not been paid since October. If you cant post can you send me a message (can new members get messages) or a e.mail
Thanks Denise

The company concerned went into liquidation in the middle of the year- if you've had work since then it is unlikely to be the same one.

Some bigger companies are renowned for paying up to 90 days after invoice -hope this is the worse case scenario for you.

John


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
www.chevrontraining.co.uk
DSA Customer Test site

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#12 31-12-12 23:36:43

whodareswins
Verified Member
From: S.E.England
Registered: 12-04-06
Posts: 550

Re: Ltd Companies (Driving School) going bust owing lots of money

The name of the school in question is no secret. The information regarding its liquidation is in the public domain and can easily be found.

I was actually a franchisee of the school concerned until February 2012 when (by mutual agreement) the franchise was terminated due to a lack of pupils. However, since that time, they have continued to pass me pupils that made inquiries from my geographical area. I also provided 60 hours of PDI (Part 3) training for them since leaving the franchise and was always paid on time without a problem. The last invoice I sent them was on the 19th October and the money was paid promptly into my bank account without me needing to chase it up. The office staff were always friendly and helpful and the owner never provided me with any misleading information. So, personally, I have never had a problem with the school or the owner.


Grade 6 ADI/Fleet Trainer, SAFED Registered Trainer, Qualified BTEC Assessor

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#13 01-01-13 13:39:34

MAZ
Verified Member
From: N/Wales, Cheshire
Registered: 13-06-06
Posts: 838

Re: Ltd Companies (Driving School) going bust owing lots of money

How it is possible to re-start after business failure:

......For many businesses, the central core of what the business does is still profitable and so often directors will want to continue to trade. This is easily possible and a sale of assets can be arranged to a new company and a lease re-assigned by a landlord, which often leaves the new company trading on in the same line of work from the same premises.

An alternative is to go for a company voluntary arrangement. If your Driving school instructor business can maintain payments into a plan, that can be used to pay off creditors, your old debt can be ring fenced and the company can continue to trade without interference. This is alternatively known as a CVA.......


http://www.helpwithdebtuk.com/search.ph … klinkid=16



Maz.

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#14 01-01-13 14:05:15

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

whodareswins wrote:

The name of the school in question is no secret. The information regarding its liquidation is in the public domain and can easily be found.

I was actually a franchisee of the school concerned until February 2012 when (by mutual agreement) the franchise was terminated due to a lack of pupils. However, since that time, they have continued to pass me pupils that made inquiries from my geographical area. I also provided 60 hours of PDI (Part 3) training for them since leaving the franchise and was always paid on time without a problem. The last invoice I sent them was on the 19th October and the money was paid promptly into my bank account without me needing to chase it up. The office staff were always friendly and helpful and the owner never provided me with any misleading information. So, personally, I have never had a problem with the school or the owner.

Don't think we are talking about the same company- like I said the one I am concerned with went into Liquidation in July so would be go smacked if they were still paying invoices in October. The last 3 sentences of your post tell me we are definately talking about someone else lol

John


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
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DSA Customer Test site

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#15 01-01-13 14:09:27

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

MAZ wrote:

How it is possible to re-start after business failure:

......For many businesses, the central core of what the business does is still profitable and so often directors will want to continue to trade. This is easily possible and a sale of assets can be arranged to a new company and a lease re-assigned by a landlord, which often leaves the new company trading on in the same line of work from the same premises.

An alternative is to go for a company voluntary arrangement. If your Driving school instructor business can maintain payments into a plan, that can be used to pay off creditors, your old debt can be ring fenced and the company can continue to trade without interference. This is alternatively known as a CVA.......


http://www.helpwithdebtuk.com/search.ph … klinkid=16



Maz.

The company I am referring to went into a CVA 12months before without telling or declaring a lot of it's creditors, the boss was just an out and out liar and thief as far as I am concerned.
He even tried to sell on contracts for a cash sum before he was wound up - oh sorry act as a consultant to ensure smooth hand over of some contracts wink


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
www.chevrontraining.co.uk
DSA Customer Test site

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#16 01-01-13 18:01:28

VandADI
Administrator
From: Coulsdon, Surrey
Registered: 29-02-04
Posts: 7,592

Re: Ltd Companies (Driving School) going bust owing lots of money

I think this is the Company John is referring to, it is in the public domain, so I am able to post here :

http://companycheck.co.uk/company/05221114

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#17 01-01-13 18:33:37

chevronjohn
Verified Member
From: North West
Registered: 15-08-10
Posts: 172

Re: Ltd Companies (Driving School) going bust owing lots of money

VandADI wrote:

I think this is the Company John is referring to, it is in the public domain, so I am able to post here :

http://companycheck.co.uk/company/05221114


That's the one sad


DSA ADI ,DSA LGV Instructor, PCV Instructor, IAM, always willing to learn  smile
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