DEALING with the aftermath of being declared bankrupt a woman set up a "charitable hobby" to look after German Shepherds, but found herself in breach of the courts for declaring herself as the director when she was prevented from doing so.

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

Magistrates heard that 48-year-old 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.

"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," she said.

She added that the rescue's website had a donation link which upon investigation fed into Riley's personal account. But there was no suggestion or allegation of misappropriation of funds.

Defending 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.

"She just threw herself into helping dogs. It was something she had done previously and she had seen other rescues doing and wanted to do something better for the dogs.

"She very much had tunnel vision when she set this limited company up. She just wanted to do something to help, and something to help her mental state of mind.

"She has been fully supportive throughout and has done nothing to aggravate proceedings."

He queried why the Department of Business, Innovation and Skills had requested costs against her in the region of £4000, citing that had she been prosecuted by the Crown Prosecution Service instead she would have only been liable for £85 costs.

Sentencing her, chairman of the bench Jane Flew said that when 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.

She said: "We note that this was all done to assist the welfare of animals and we don't doubt your commitment to that end."

She sentenced her to 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 a contribution of costs of £2000, pay a victim surcharge of £80 and banned from being the director of a company for three years.

Ms Flew said: "If you breach this order or you commit any other offence while on this order you will be brought back to court and you can expect to serve all or part of that custodial sentence.