Written Question·Department for Business and Trade·UIN 106430
Companies: Insolvency
Tabled: 16 January 2026
Answered: 22 January 2026
Question
Edward Morello
Liberal Democrat — West 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 McDougallCompanies 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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