A BLACKBURN businessman has been banned from acting as a company director after his computer consultancy firm failed with debts of more than £40,000.

Paul Anthony Smith, of Viscount Avenue, Lower Darwen, agreed to a four and a half-year disqualification order for his 'unfit conduct' in running Democlever Limited, based at Bamber Bridge.

The Government's Insolvency Service said Democlever had gone into liquidation in April 2001 with estimated net debts of £42,182.

At the time of the liquidation, the company's tax liability to the Inland Revenue totalled £52,000 and Mr Smith had allowed the company to continue to trade when there was no reasonable prospect of him paying his tax bills due to the extent of the money he was drawing from the business.

The Insolvency Service said Mr Smith had also failed to file trading accounts with the Registrar of Companies between 1993 and 1998.

As a result of the disqualification order, Mr Smith is prevented from acting as a company director or taking part in the promotion, formation or management of any business for four and a half years.