Director Compensation Orders Reach £1.24m in the 2026 to 2027 Enforcement Figures

Director Compensation Orders Reach £1.24m in the 2026 to 2027 Enforcement Figures

The Insolvency Service secured 37 compensation orders and undertakings worth £1,235,350 against directors in the first four months of 2026 to 2027, according to enforcement figures published on 27 August 2026. For a creditor left short by a failed company, a compensation order is a route to getting money back. For the solicitor advising that creditor, it is also the point at which asset tracing starts to matter.

Compensation orders and the enforcement figures for 2026 to 2027

The transparency release covers April to July 2026 and is drawn from the Insolvency Service’s live administrative systems, so some numbers may be revised in later months. Alongside the compensation orders, it records 389 director disqualifications with a mean length of 7.7 years. Of those, 345 were made under section 6 of the Company Directors Disqualification Act 1986 for unfit conduct in relation to an insolvent or dissolved company, and 225 of the section 6 cases involved allegations of abuse of the COVID-19 financial support schemes.

The criminal side of the same period produced 31 convictions, 459 months of imprisonment and confiscation orders totalling £48,255, and eleven companies were wound up in the public interest. The full tables sit in the Insolvency Service’s enforcement outcomes for 2026 to 2027.

Compensation orders are only worth what can be recovered

A compensation order under sections 15A to 15C of the Company Directors Disqualification Act 1986 requires a disqualified director to pay for the losses their conduct caused, either to identified creditors or as a contribution to the insolvent estate. The order fixes a sum. It does not find the money. A director who has already presided over one insolvency may hold few visible assets, and the figure on the order stays theoretical until something is located to satisfy it.

This is where an asset search does the practical work. Before enforcing, the creditor needs to know what the director actually holds: property, bank and investment accounts, shareholdings in other companies, vehicles, and any assets moved into a spouse’s or associate’s name. A thorough asset trace turns a paper order into a realistic recovery plan, and tells the client early whether enforcement is worth the cost.

Tracing the assets behind an enforcement outcome

The same reasoning applies to the disqualifications and the confiscation figures. A disqualification stops a director running companies, but it does not repay anyone. Where a parallel civil claim is available, recovery still depends on identifying assets that can actually be reached. Asset tracing also flags the warning signs of dissipation, such as recent transfers to connected parties, which can support an application to freeze assets before they are moved beyond reach.

The investigation pipeline suggests more of this work is on the way. As at 31 July 2026 the Insolvency Service had 1,270 company cases under civil disqualification investigation and 288 cases under criminal investigation. Every concluded case that ends in a compensation order raises the same question for the creditor who wants to be paid.

The recovery pipeline for creditors and their advisers

For litigators, the message from the August 2026 figures is one of sequence. Establish liability, but commission an asset search early enough to know whether enforcement is realistic and where to point it. A well-timed trace can be the difference between an order that is collected and one that sits unpaid on the file.

If you are advising a creditor on a director compensation order and need to know what can be recovered, fill in the form below to speak to the Tremark asset tracing team.

Frequently Asked Questions

What are director compensation orders?

They are orders under the Company Directors Disqualification Act 1986 requiring a disqualified director to pay compensation for losses caused by their unfit conduct, either to creditors or to the insolvent estate.

How does asset tracing help enforce compensation orders?

An asset trace identifies the property, accounts and interests a director genuinely holds, so a creditor can decide whether and how to enforce rather than pursuing a debtor with nothing to take.

Can assets moved to family members still be traced?

Often yes. A professional asset search can surface assets that have been hidden or moved to connected parties, which may support enforcement or an application to prevent further dissipation.