Peter Baker, 44, and Dean Longden, 42, were directors of First Fix Ceiling & Partitions, which was placed into creditors’ voluntary liquidation in February 2011.

An investigation by the Insolvency Service found that in October 2010, following the closure of several trade clients, the two directors sought professional advice about the liquidity of their contracting business.

They were told First Fix was solvent, with liabilities of £170,000 and assets of £462,000, mainly cash in the firm’s bank account.

Between that meeting and the voluntary liquidation of First Fix, Baker withdrew over £190,000 and Longden over £185,000, including £60,000 each on 26 January 2011.

Creditors in the voluntary liquidation totalled £253,865 of which £216,693 were owed to the HM Revenue & Customs.

The liquidator has realised funds totalling £114,237 of which £90,000 were repayments by the pair.

Clive Tranter, head of the company investigation north east team based in Leeds said: “Mr Baker and Mr Longden have presided over a company that in just three months went from being capable of paying its liabilities, to one which was insolvent, due to the directors withdrawing company funds.

“The directors claimed that they were acting on professional advice but their undertakings indicate they have accepted their actions were not those of responsible directors.

“The public can be assured that The Insolvency Service will seek to take action against such directors and aims to protect the public and public finances from future such abuses.”