THE director of an engineering business, which failed with debts of more than £248,325, was disqualified from acting as a company director for 12 years, when she appeared at Teesside County Court.

Kareen Rose James-Rawson, 52, of High Heath, Hawthorn Park, Washington, Wearside, was a director of Tees Precision Limited, (Tees), which had its business in Dukes Way, Teesside Industrial Estate, Thornaby.

The company went into liquidation on February 23, 2000 with estimated debts of £248,325 owed to its creditors.

The Disqualification Order prevents Mrs Rawson from being a director of a company, being concerned in or taking part in the promotion, formation or management of a company for 12 years.

Matters of unfit conduct found by the court included Mrs Rawson giving false or inaccurate details about the business to both HSBC and Yorkshire banks.

Another unfit conduct matter involved Mrs Rawson permitting an attempted sale of plant and machinery belonging to Tees, five days before placing the firm into voluntary liquidation, for £54,000 to Arrow Engineering Limited.

The directors of that company were known to her son who was a director of Tees, which was not an arm's length bona fide transaction, the court found.

The liquidator would not ratify the sale because the value of the items at open sale was close to £70,000.

Tees was not in a position to sell at least three items because two were subject to hire-purchase agreements and the third was subject to a walking possession agreement in favour of the Inland Revenue.