A college society consist­ing of up-and-coming Irish entrepreneurs has been officially disbanded after allegations of funding misuse involving a trip to Budapest.

The DCU Entrepreneurial and Social (E&S) society, which has over 1,000 members, was initially suspended after doubts over the trip first arose.

The young entrepreneurs said they were going to Hungary for a business conference but failed to produce any evidence of attending. The alleged trip took place at the end of 2009.

E&S, which was also often commercially sponsored, will no longer be able to arrange or carry out activities.

The governing body for college societies, the Societies and Publications Committee (SPC), first raised doubts three weeks ago about the trip, which it funded. Because of the uncertainties over the trip, they initially suspended the society but last week officially disbanded it.

One source in the college said, "They are basically a social society and, a bit like other college societies, they are known for their drinking. It was put to them that they never actually attended a conference which was technically their only reason to go to Budapest, and spent the money off having a laugh. They couldn't produce any evidence to the contrary and they received an email last week saying they had to officially disband.

"The reaction in the college is quite mixed. Some students are sad that the biggest society well-known for the craic is gone, and others are delighted saying they used money [to] go off and have a laugh in Budapest."

The chairman of E&S Ian Denham told DCU newspaper the College View he was "devastated" and intended to appeal the decision to disband.