A recruitment boss has been banned from being a director for five years after her recruitment company failed, leaving debts estimated at £3.5m.

Alison Harrison was director of north-east firm Compupay, which traded as the Key Group, in Taunton, Somerset and went into liquidation in April 2002. Harrison gave an undertaking last month not to hold directorships or take part in any company management.

She admitted a string of charges of unfit conduct, including failing to maintain adequate accounting records of her company. This meant the administrator was unable to find why the company failed or identify its assets and liabilities.

It de-registered for VAT in February 2001, failed to file any VAT returns or remit VAT payments and failed to pay Crown Department debts of £3,537,710. Harrison declined to comment.

•Gavin Broome, a former director of Black Country-based agency Keylink Wolverhampton, has been banned from being a director for seven years after his firm also failed.