A BIRTLE businessman whose firms crashed with debts of nearly £350,000 has been banned from acting as a company director for five years.

The disqualification has been imposed upon both Graham Lyons of Birtle and his wife, Karen of Bronte Close, Norden, Rochdale.

Manchester County Court made the disqualification orders in respect of the couple's conduct as directors of Village Hair Studio Ltd and Premier Hair Group Ltd.

The banning prevents both from being a director of a company or in any way, directly or indirectly, being concerned in or taking part in the promotion, formation or management of a company for the five years.

Village Hair Studio Ltd traded between October 1987 and 1995 from 12 hairdressers' shops in the North Manchester area. Its business was, in effect, taken over by Premier Hair Group Ltd which traded from June 1995 in the same business.

Both companies were placed into creditors' voluntary liquidation in October 1998 with a combined estimated total deficiency to creditors of £347,459.

Matters of unfit conduct by both found proved by the court included:

Allowing Premier to trade from February 1996 until September 1998 while insolvent, to the detriment of the company's creditors and

Drawing excessive renumeration and benefit from Premier.

Both drew monies from the company by cheque and in cash which was recorded as directors' renumeration or debited to loan accounts which were subsequently reclassified as dividends which were paid, despite the fact the company did not have sufficient retained profit to pay them. The renumeration drawn by the couple as directors was a major contributory cause of the company's failure.