Actions to take in the event of a sudden and unexpected change to your MOT station’s legal entity.

A recent conversation with a client who found themselves in an upsetting predicament after the passing of a family member and business partner has prompted me to ‘put pen to paper’ and share what you should do in the event of a sudden change to the legal entity of your station.

Losing a valued business partner or a key member of your VTS is not something any of us would like to consider. It can be for various reasons, but whatever they are, it will change your MOT station’s legal entity, which can significantly impact your business.

The best way to explain this is a simplified version of Section B of the MOT Guide:

Any authorisation by DVSA allows only the legal entity authorised to provide the testing service. If a company is reconstituted in a way that leads to a new company registration and number being issued, then it will be regarded as a new entity and a new authorisation is needed.

If, in a partnership, a partner leaves or joins, the partnership becomes a new entity, so again, a new authorisation is needed. This is also the case if a sole trader takes on a partner or forms a company (see also Transfer of records following cessation or disciplinary action).

It’s not necessary to stop testing immediately for changes other than those described in automatic cessation. However, DVSA must be notified and receive a full application within 28 calendar days if there are any other significant changes to the control or operation of the business.

Failure to notify such changes within this period may be treated as a shortcoming under Section I. Discipline . It could result in the VTSs approval to test being suspended until an acceptable application has been received.

The changes referred to would include:

• a sole trader entering into a partnership
• any change in the partnerships constitution (where the AE is a partnership)
• any change to the directors of the company (where the AE is a company)
• any change to the person who was required to attend the MOT managers’ course – this only applies where a trained person is required under section B2. Training
• any change in trading name or court-appointed supervision of the business other than that which is described as automatic cessation
• a company that continues to operate under the same registration and company number may continue testing provided that any changes to the officers of the company or change in the relationship to any parent company have been notified

If the changes you need to make are because of a sudden death, it can bring a whole new level of emotion and stress. So, if you own an MOT site, taking steps to protect your business before such an upsetting event is essential.

What to do if the deceased was the only qualified MOT Manager and AEDM

If a sudden death occurs and the deceased was the only qualified MOT Manager and AEDM of the business, the team members at an MOT site may experience difficulty accessing the MOT Testing Service.

Having a plan in place for such situations is vital to ensure that your business operations run smoothly, and having multiple authorised individuals can help with that.

For example, having at least two people authorised to access the MOT service is a smart move, as there will be little disruption to testing, booking MOT slots, retrieving reports, and managing testers can continue. It’s important

In the case of a partnership, if a second partner is listed on the MOT service, continuity can be shown when the time comes to complete the VT01 application for DVSA to change the partnership details. Remember, this must be carried out within 28 days – and that’s not much time when people are grieving, so having a step-by-step process in place beforehand will help.

Apart from the DVSA legislation, What else could you consider?

1. Create a will.If you have a will, your assets can be distributed according to your wishes, and your business can be transferred to the appropriate person.
2. Designate a successor owner.If you don’t have a will, you can designate a successor owner for your MOT Centre. This person can take over ownership of your business after your death.
3. Consult a solicitor. If you have any concerns about protecting your MOT Centre, speak to a professional sooner rather than later. Be prepared.
4. Make a plan. Having a plan in place for transferring your business to the successor owner is also a good idea. This plan should include details about how the business will be managed and how the successor owner will be compensated.

It’s important to ensure that the person taking over the role is comfortable with all aspects of MOT Centre Management, especially the areas that may be unfamiliar to them. For example: get them qualified to Level 3 MOT Test Management; keep them involved and help them gain experience in the management of your VTS.

By taking these steps, you can help to protect your MOT site and reduce any additional stress in the event of a sudden death; and ensure that your business continues to thrive for years to come.