A ROSSENDALE couple have been disqualified as company directors after admitting they traded when they knew their business was insolvent - leaving debts of more than £500,000.

Geoffrey Pike, of Prospect Road, Rawtenstall, and his wife Sandra Pike, of Hollin Lane, Rawtenstall, have been disqualified for five and three years respectively at Leeds County Court.

It relates to their conduct as directors of fashion footwear sales company Geoffrey Pike Wholesale Footwear Limited, of Waterfoot.

When the company was placed into voluntary liquidation on September 5, 1995, creditors were owed £502,985. Since then it has increased to £653.613.

Mr and Mrs Pike had made an application to delay the operation of the disqualification order so they could have more time to apply for permission to act as directors of Rossendale-based Sabatine Shoe Company but this was refused. Both Mr and Mrs Pike contested the proceedings but before the trial they agreed to make a statement setting out their responsibility. They admitted allowing company to trade at a time when they knew or ought to have known that the company was insolvent without a reasonable prospect of payment of creditors' claims.

Mr and Mrs Pike admitted allowing Mr Pike to operate a director's loan account in contravention of section 330 of the Companies Act. His account was overdrawn by £19,206 above the prescribed limit.

They failed to ensure the company had adequate financial information to maintain financial control or accurately determine the company's financial position at any particular point in time. Mr and Mrs Pike admitted allowing the reduction of their personal liabilities and the preferential treatment of the company's bankers over other creditors at a time when they knew or ought to have known the company was insolvent, thereby acting to the detriment of the company and its creditors.

Mr Pike began the company as a sole trader in 1980 and in 1985 incorporated it to take over his business.

Throughout the company's history both Mr and Mrs Pike were recorded as directors and Mrs Pike was company secretary.

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