A MAN was disqualified from acting as a company director for five years after his video games company was wound up with debts of £84,510.

Mahammed Hanif Patel, of Nottingham Street, Blackburn, was a director of MHP Enterprises Limited, of Radcliffe, near Bury. The company, which closed down in May 2000, sold printed circuit boards for video games machines which it also sold or hired.

The Insolvency Service said the Secretary of State for Trade and Industry had accepted a disqualification undertaking from Mr Patel which prevented him from being involved in the running of any company for five years.

Mr Patel was accused of failing to ensure that MHP Enterprises maintained proper accounting records. The Official Receiver had been unable to verify cash rental income, cash payments or pre-payments of loans made by relatives. Due to this failure, Mr Patel did not account for £30,813 which represented unrecorded cash sales from December 1998 to May 2000.

In a further example of unfit conduct, Mr Patel caused the company to make loan payments of £12,338 to creditors who were also family members.

Mr Patel also failed to ensure proper steps were taken to protect and realise MHP's assets when the company ceased trading, with the result that stock estimated to be worth £50,000 had been lost.

If Mr Patel was found to be involved with the promotion, formation or management of any company in the next five years, he would face fines and the prospect of up to two years in prison.