A BANKRUPT woman who set up a dog rescue business without the permission of the court has been handed a suspended prison sentence and banned from being director of a company for three years.

Sarah Riley, 48, of Elizabeth Way, Siddington appeared before magistrates sitting in Swindon on Monday, charged with being the director of Riley's German Sheperd Dog Rescue Ltd when she was an undischarged bankrupt and without having the permission of the court.

Magistrates heard that Ms Riley had set up the rescue a month after being declared bankrupt in May 2014, and registered it as a limited company with Companies House.

Prosecuting, Emer Morrison from the Department of Business, Innovation and Skills told the court that in the year following bankruptcy, individuals had certain restrictions placed on them, such as not being able to apply for credit or become the director of another company without permission from the court.

She said: "The purpose of these restrictions is to protect consumers and people doing business from the risk of giving money to a company operated by someone who may be unfit as a result of being bankrupt."

Defending Ms Riley, David Adams told the magistrates that his client was a lady of good character and this was her first time before the courts. He said: "It was a charitable hobby, although set up as a company. She perhaps did not appreciate the ongoing ramifications of her involvement with a limited company.”

Sentencing her, chairman of the bench Jane Flew said that when Ms Riley had set up the rescue she would have had to sign documents that should have made her aware of the situation she was in.

Ms Riley was given a four month custodial sentence, suspended for two years, during which time she must carry out 150 hours of unpaid work. She was also ordered to pay £2,000 court costs, a victim surcharge of £80 and banned from being the director of a company for three years.