Paul Winskill, 54, the former boss of Aintree-based firm Premier Asphalt Limited, has been banned from running companies for eight years after admitted to transferring £1,044,794 to the detriment of the company's general body of creditors.
The Insolvency Service said Mr Winskill started the company in 1985 and provided construction services for commercial buildings and roadworks across the country.
However, the business ran into trading difficulties and after more than 30 years, Premier Asphalt entered into administration on 19 February 2016.
Administrators appointed to close the company reported to the Insolvency Service that the directors had not fully co-operated with them and failed to explain why the company had paid out more than £1m in the two weeks prior to their appointment.
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An investigation discovered that prior to entering into administration, a winding up petition was served on Premier Asphalt on 03 February 2016 as a trade creditor was owed more than £300,000.
However to avoid paying debts, Mr Winskill immediately transferred £1,044,794 to three other businesses, which were later discovered to be operated by Mr Winskill although he wasn't the appointed director.
The Secretary of State accepted a disqualification undertaking from Mr Winskill on 08 February 2018.
Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said: "Following extensive enquiries, we discovered not only had Winksill transferred more than a million pounds out of the company to avoid paying his creditors what they were owed, but the money was moved to other companies which we found that he was also running.
"Directors who put their own personal financial interests above those of creditors damage confidence in doing business and are corrosive to the health of the local economy.
"This ban should serve as a warning to other directors tempted to help themselves first, you have a duty to your creditors and if you neglect this duty you could be investigated by the Insolvency Service and lose the privilege of limited liability trading."
(LM)
