Insolvency Service Enforcement Outcomes: 2020/21
Statistics on new outcomes resulting from the enforcement activities of the Insolvency Service.
Documents
Details
-
During 2020/21 there were a total of 972 director disqualifications under the Company Directors Disqualification Act (CDDA) 1986, as a result of the work of the Insolvency Service. The number of director disqualifications in 2020/21 was lower than in 2019/20. Previously, the number of disqualifications had been stable at between 1,200 and 1,300 for the past seven years.
-
The mean average length of director disqualification in 2020/21 was 5 years and 6 months, similar to the average length of disqualification enforced in the previous two financial years.
-
During 2020/21 there were 42 companies wound up in the public interest, down 10 cases from the previous financial year, and continuing the long-term decline in the number of companies wound up in the public interest. The decline followed a legislative change in 2016, which increased the number of regulatory and enforcement bodies to which the Insolvency Service could disclose material. In some cases, allowing disclosure to these additional bodies has been more effective than winding up the company.
-
During 2020/21 there were 302 bankruptcy and debt relief restrictions orders and undertakings, compared with 470 in 2019/20. This is the lowest level in the time series since 2009/10. The decline in the number of bankruptcy restriction orders in 2020/21 coincided with a fall in the number of bankruptcies during the same period.
-
As at 31 March there were over 6,800 former directors with active disqualifications and over 2,200 individuals subject to bankruptcy and debt relief restrictions.
-
During 2020/21 there were 56 individuals who faced criminal charges, and all were convicted.
-
There were 189 separate sentences imposed in 2020/21. The most common sentences imposed were community orders, which include a range of requirements such as unpaid work, curfews or periods of supervision.
The numbers of individual and company insolvencies during 2020/21 were lower than recent historical levels. This is likely to have been driven by Government measures put in place to support businesses and individuals during the coronavirus (COVID-19) pandemic. Further information on insolvency trends can be found in the published Quarterly and Monthly Insolvency Statistics.
Impacts associated with the coronavirus pandemic are also likely to have contributed to the lower volume of enforcement outcomes in 2020/21 compared to pre-pandemic levels, in particular the short-term reduced operational running of HM Courts & Tribunals Service.
Updates to this page
Published 12 May 2020Last updated 22 April 2021 + show all updates
-
Annual update to add commentary and updated tables, as well as updated methodology documentation.
-
Updated data added
-
New updated information added
-
Monthly updated tables
-
Update to monthly statistics
-
Update to monthly Enforcement Statistics
-
Update to monthly enforcement statistics
-
Monthly update of Insolvency Service enforcement statistics
-
Update of monthly enforcement statistics
-
Update of monthly statistics
-
Update to monthly enforcement statistics.
-
First published.