Written Question·Department for Business and Trade·UIN 106430

Companies: Insolvency

Tabled: 16 January 2026
Answered: 22 January 2026

Question

Edward Morello

Liberal DemocratWest Dorset

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

Blair McDougall
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...

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