Companies: Insolvency
Commons · Question 106430 · Tabled 16 Jan 2026 · Department for Business and Trade · Official record
Answered 22 Jan 2026
Question
Asked by Edward Morello
To ask the Secretary of State for Business and Trade, whether he plans to review company insolvency rules that permit company directors to retain significant personal assets following corporate bankruptcy.
Answer
Answered by Blair McDougall, 22 Jan 2026
Companies are separate legal entities and directors only become liable for company debts under limited circumstances. This protection encourages entrepreneurship and is central to the health of the UK economy. Most companies do not become insolvent due to...