BOARDROOM battles at Enterprise plc -- the company that began life as Lancashire's job creation agency -- have cost shareholders more than £500,000 in compensation to former executive directors.

A management buy-out was foiled when the board voted against it last year and the full cost of pay-outs relating to that and payments to other ex-bosses is revealed in the company's annual report and accounts.

The document shows that five former executive directors of Enterprise plc have collected a total of £526,000 in compensation for loss of office.

And following the company's merger with the ARM group in August last year, a further £50,000 has gone in compensation to non-executive directors.

The failed management buy-out was led by chief executive David Taylor, a former adviser to Deputy Prime Minister John Prescott, and included finance director Laurence King and director of property Gwynne Furlong.

The annual report for 2000 reveals that Mr Furlong collected the largest pay-out, receiving a cheque for £173,000. Mr Taylor and Mr King each received a golden handshake of £30,000.

In the previous year, deputy chief executive, Charles Brocklehurst, and director of economic development Dennis Artess, a former Blackburn Borough Council official, received £151,000 and £142,000 respectively in compensation for loss of office.

The former chairman of the company Sir Leslie Young received £30,000 compensation for loss of office following the merger with ARM and a £15,000 bonus. The other non-executive directors, Lord Patel of Blackburn; former Co-op chairman, Jim Mason; Wiswell businessman Frank Noon; former Blackburn County Councillor, Harry Caunce; and ex-Leyland bus boss, Eric Turner; each received £4,000 compensation.

Enterprise plc merged with ARM last year in what was effectively a reverse take-over. The company still undertakes a series of economic development and training contracts on behalf of Lancashire County Council.