CLLS Insolvency Law Committee response to the consultation on Corporate Civil Enforcement Reforms - June 2026

The committee broadly supports tackling director misconduct but warns reforms must not undermine fairness, access to justice, or discourage responsible directors and turnaround specialists.

It opposes automatic disqualification and replacing court decision-making with the Secretary of State, arguing serious sanctions need independent judicial oversight.

It is sceptical of reversing burdens of proof for antecedent transactions, warning this could create uncertainty, chill rescue finance, and disrupt ordinary group arrangements like cash pooling.

It supports clearer information-gathering powers and shadow director liability, but only with strong safeguards such as privilege, proportionality and review rights.