Four directors of a company which traded in gaming equipment have been disqualified for periods of between three and a half and 11 years.

The Secretary of State has accepted undertakings offered by Alexander Edwin Auckland of Harrogate, North Yorkshire and by Mark Kevin Sowray of Bedale, North Yorkshire disqualifying each of them from managing or in any way controlling a company or being a director until 17th June 2027.

The Secretary of State has also accepted undertakings from Alison Jayne Auckland of Ripon, North Yorkshire and by Sarah Louise Sowray of Bedale, North Yorkshire disqualifying each of them from managing or in any way controlling a company or being a director until 17th November 2019 following an investigation by The Insolvency Services Company Investigation Team, in Manchester.

Mrs Auckland and Mrs Sowray were each appointed directors of AMG Leisure Limited (AMG) from 8 March 2006, and Mr Auckland and Mr Sowray were each appointed directors of AMG from 5 July 2006 until AMG entered Administration on 8 April 2014.

AMG was placed into Administration on 08 April 2014, with an estimated deficiency to creditors of 1,190,744. The company traded as distributors and operators of gaming equipment.

Mr Auckland and Mr Sowray did not dispute that they caused AMG to breach conditions of an Invoice Factoring Finance Agreement to the ultimate financial detriment of the provider.

Mrs Auckland and Mrs Sowray did not dispute that they abrogated their duties as directors of AMG, in particular in the period from 22 May 2013 until the date of Administration on 08 April 2014, in that they took no part in the management of the company; thus allowing AMG to breach conditions of an Invoice Factoring Finance Agreement to the ultimate financial detriment of the provider.

Commenting on the case Rob Clarke, Head of Insolvent Investigations North, said:

In this case the directors arranged for creditors to pay 312,741 to the company rather than pay the factor who had advanced funds against the invoices causing losses to the factor . It is no defence to state that directors had no role in the company, those appointed are responsible regardless of their level of involvement.

The protection afforded by limited liability is based on company directors meeting their duties and obligations and if they fail to do so, this protection will be withdrawn.