Companies: Insolvency
The question
To ask the Secretary of State for Business and Trade, what plans his Department has to encourage greater partnership between insolvency practitioners and Companies House to prevent phoenixing.
Answered by Blair McDougall
There is already a well-established director disqualification regime in the UK to prevent directors guilty of misconduct from taking part in the management of companies in the future.
Insolvency practitioners have a duty to report to the Government’s Insolvency Service on the directors’ conduct within three months of liquidation or administration. Where serious misconduct is identified, this can lead to disqualification or referral for criminal prosecution.
Since the Economic Crime and Corporate Transparency Act 2023, Companies House and The Insolvency Service have been developing a deeper enforcement partnership. Updates on implementation are included in the annual reports provided to Parliament.
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