Football league bosses have denied making assurances to Crawley Town that no action will be taken over bankrupt chairman Chas Majeed.

The club issued a statement on Friday claiming the Football Conference told them no action is being pursued following revelations in The Argus that Mr Majeed is a non-discharged bankrupt.

It is against Football Association rules for a bankrupt to hold any position of power at a football club.

John Moules, operations director of the Football Conference, said yesterday: "We have not made any statements to anyone, public or club.

"Neither The FA nor the Conference are in a position to take any action until the facts have been established.

"The Football Conference is not issuing any statement regarding the current speculation of ownership and directorship of Crawley Town.

"Once The FA and Football Conference have completed fact findings the club will be informed of those findings and be given the opportunity to respond if necessary.

"Mr Majeed has confirmed that he would address the matter next week with The FA."

Mr Majeed, 36, is also being investigated by Sussex Police. It is a criminal offence for a non-discharged bankrupt to be involved in running a limited company, whether formally appointed as a director or not.

His brother Azwar, 30, is listed as the sole director and owner of Crawley Town with Companies House.

In the club's statement, Mr Majeed's status as a bankrupt is dismissed as "an administrative issue of updating records."

But according to the Insolvency Service his discharge from bankruptcy has been suspended indefinitely.

A spokeswoman for the club said yesterday Mr Majeed was applying through the courts to have the suspension lifted.

The court will then make a judgement on whether he has abided by the terms of his bankruptcy order.

She would not comment on any other matter.