A family of directors have been disqualified after failing to comply with the rules of insolvency.
The report, published by the Insolvency Service, details the collapse of family business Power Installations.
According to the regulator, husband and wife team John and Helen Power were directors of the company, along with their son Daniel Power.
The business first incorporated in 1996, installing security systems across Bedfordshire in residential, commercial and industrial buildings.
However, the family-owned business experienced trading difficulties and entered into liquidation in January 2017. After an initial review, the appointed liquidator reported potential misconduct to the regulator.
Upon investigation, the Insolvency Service found that the family had caused the company to retain trading receipts of just over £320,000, meaning they could reduce the overdraft borrowing facility which they had guaranteed against their own residential property.
However, this resulted in other creditors going unpaid. This included HM Revenue & Customs (HMRC), which was owed more than £51,000 in tax.
In total, Power Installations owed a total of £967,000 to creditors.
Finding that the Power family had “put their own financial interests above those of creditors”, the courts disqualified the directors from managing a limited company for a combined period of 19 years.
Commenting on the case, Rob Clarke, Chief Investigator for The Insolvency Service said: “The Power family clearly put their own personal financial interests above those of creditors when the two companies were facing liquidation. Such actions not only damage business confidence but are also corrosive to the health of the local economy.
“These bans should serve as a warning to other directors tempted to help themselves first, that you have a duty to your creditors and if you neglect this duty you could be banned for a significant period of time.”