A father and son Internet design business in Ludlow that collapsed with £659,000 of debts have undertaken not to act as company directors for the next five years.

Alan Chivers and his son Thomas, 22, ran the business Genesis Interactive from their former home at Moor Hall, Clee Downton. It went into voluntary liquidation in September 2001.

A Department of Trade and Industry investigation of the directors' conduct concluded they were unfit to be involved in company management in the future. The two had failed to file VAT returns, failed to pay tax and national insurance contributions and failed to pay VAT owing to Customs and Excise.

From December 1999 when the two were appointed directors, and September 2001 almost half a million pounds went into the company's account with Lloyds TSB, says a report from the DTI's Insolvency Service.

The money was used for other payments, although £27,280 of it was paid to the Inland Revenue. No VAT payments were made.

The report says when the company liquidated, £74,000 was owed to Customs and Excise and £101,000 was owed to the Revenue.

Messrs Chivers did not dispute these "matters of unfit conduct" and both have given an undertaking they will not hold directorships or take part in company management.

In a statement issued to the Advertiser this week, Tom and Richard Chivers said they were minority shareholders and just two of the four directors of Genesis Interactive Ltd. The company went into voluntary liquidation some two-and-a-half years ago.

The business was funded by a group of independent investors who controlled the financial affairs of the company, said the statement.

"When the investors discontinued their agreed financial support in the summer of 2001, the directors had no alternative but to close the company," Tom Chivers added.