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The government's Insolvency Service has launched an investigation into the conduct of Hadlow College bosses.
The college, run by the Hadlow Group, has endured an incredibly difficult year in which it became the first in the country to enter education administration.
An application to the courts for it to go through a new insolvency regime was the latest blow after a series of scandals, which began following the intervention of the Further Education Commissioner at the start of the year.
The commissioner recommends what actions college governing bodies could make to improve performance.
Since then, chief executive Paul Hannan and deputy chief executive Mark Lumsdon-Taylor have been suspended amid an investigation into college finances.
The commissioner then published a report which claimed senior leaders created private business partnerships which were losing huge sums of money and that members were asked to leave committee meetings so certain items could be discussed in secret.
A spokesman for the Insolvency Service said: “I can confirm that we are conducting an investigation into the conduct of the directors of Hadlow College.
“If there is evidence of misconduct, and it’s in the public interest, the Insolvency Service may pursue enforcement measures, such as director disqualification.
"The Insolvency Service has a three-year window from the date of insolvency within which to issue disqualification proceedings should there be evidence of wrongdoing.”
The Hadlow Group and administrators BDO have been approached for comment.
