AMG, which operated as a distributor and operator of gaming equipment, was incorporated on 8 March 2006 and operated from premises at Melmerby Industrial Estate, Ripon.

The company’s directors were two couples, Alexander and Alison Auckland, and Mark and Sarah Sowray, all from north Yorkshire.

Alison Auckland and Sarah Sowray were each appointed directors of AMG Leisure Limited (AMG) from 8 March 2006, and Alexander Auckland and Mark Sowray were each appointed directors of AMG from 5 July 2006 until it went into administration in April 2014, with an estimated deficiency to creditors of £1,190,744.

Alexander Auckland and Mark 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.

Their wives 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, in that they took no part in the management of the company; thus allowing AMG to breach the conditions of the finance agreement.

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.’

Alexander Auckland and Mark Sowray have both been disqualified as acting as directors for a period of 11 years, while each of their wives has been given a ban of three years and six months.