Corporate Civil Enforcement Regime

Blair McDougall Excerpts

Wednesday 25th March 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

The enforcement activities of the Insolvency Service—tackling economic crime, disqualifying directors for corporate misconduct and winding up companies in the public interest—serve to protect market integrity. This, in turn, fosters economic growth by maintaining a trustworthy environment, conducive to investment and entrepreneurship.

A robust corporate enforcement regime capable of tackling all forms of corporate abuse is essential for providing a level playing field for legitimate businesses, so that they can thrive and grow. It encourages good corporate governance standards, provides the confidence to do business, and helps attract investment for companies based in the UK.

Following a comprehensive review of the corporate civil enforcement framework, I have concluded that while disqualifying directors and winding up companies remain important for addressing corporate misconduct, they do not, as they are, provide the flexibility needed to deal with today’s fast-moving and complex business landscape.

I am therefore publishing a consultation today that contains a range of options that would modernise the regime and add new flexibilities for dealing with varying degrees of misconduct. These options broadly fit into three categories:

Structural reforms

To modernise the enforcement framework, we could introduce additional tools to enhance flexibility and improve efficiency. These reforms would enable Government to address a broader range of corporate abuse, while supporting a more proportionate and targeted response to lower-level misconduct. The proposals seek to accelerate enforcement processes, speeding up the removal of individuals responsible for corporate abuse, and strengthening protections for the public and the wider marketplace.

Options include: introducing tailored restrictions for directors—as opposed to outright bans—when misconduct is due to ignorance, rather than an intent to commit wrongdoing; a faster process to ban directors from the marketplace where companies have been liquidated on public interest grounds due to causing harm; and updating and simplifying disqualification proceedings, by shifting defended cases from the courts to a tribunal model.

Information gathering powers

Strengthening the Government’s powers to seek and gather information necessary to support effective and efficient investigations into corporate abuse. This will ensure powers are fit for purpose, particularly in the light of the new powers introduced by the Economic Crime and Corporate Transparency Act 2023.



Procedural changes

Improving and modernising the current procedure for director disqualification. Making the processes more efficient and ensuring fairness and clarity for all parties.

Consultation next steps

The consultation invites general feedback on the options for reform, which will inform further policy development and identify preferred options. The consultation will be open for 12 weeks. I encourage those interested to respond to this consultation and use this opportunity to provide their views. The full consultation is available on gov.uk.

[HCWS1448]