Guidance

Director disqualification: a guide to compensation orders

Compensation orders aim to make directors who are subject to a disqualification order or undertaking financially account for the consequences of their unfit conduct.

Documents

Details

The Insolvency Service can apply to the court for a compensation order on behalf of the Secretary of State for Business and Trade. The court can make a compensation order if the director is subject to a disqualification order or undertaking and their conduct has caused a quantifiable loss to one or more creditors of an insolvent or dissolved company.

Updates to this page

Published 9 November 2017
Last updated 24 January 2024 + show all updates
  1. New document content added regarding publicity and disclosure of compensation orders and undertakings

  2. Section 1. Updated due to new powers to investigate dissolved companies

  3. First published.

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