A director conduct report in liquidation is a confidential document that the liquidator must send to the Insolvency Service about how you ran the company. It happens automatically in every liquidation, whether or not anything went wrong, and it forms the basis of any later decision about disqualification.
Many directors only learn about this once the company is already in liquidation, which can feel unsettling. Understanding why it exists and what it looks at can turn that uncertainty into something you can plan around.
Why every liquidation triggers a report
Parliament requires it. Under the Insolvency Act 1986, the appointed office-holder must review the conduct of every director who served in the three years before the company failed, and report their findings to the Insolvency Service.
This applies to compulsory liquidations (ordered by the court, often following a winding-up petition) and creditors' voluntary liquidations alike. It is not a sign you are already suspected of anything — it is simply standard practice, large company or small.
If you are still weighing up how liquidation affects you personally, it can help to first understand Am I Personally Liable for Company Debts?, since personal exposure and conduct scrutiny often come up together.
Who prepares it and where it goes
The report is prepared by the liquidator — a licensed insolvency practitioner appointed to wind up the company and deal with its assets and creditors. They must submit it within a set window after their appointment, currently three months, though this can be extended in complex cases.
The report goes to the Insolvency Service, the agency responsible for investigating director conduct and, where necessary, seeking disqualification through the courts. Its own guide to director investigations sets out what to expect. The report itself is confidential: you do not automatically see it, and it is never published or shared with creditors.
What the director conduct report examines
The liquidator is looking at how you ran the company, particularly in the period leading up to its failure. A director conduct report typically covers:
- Whether company money or assets were used properly, or diverted for personal benefit
- How and when the company's financial records were kept, and whether they were handed over
- Whether trading continued after you knew, or ought to have known, the company could not avoid insolvent liquidation
- Whether any creditors, including HMRC, were treated unfairly compared with others
- Compliance with statutory duties, such as filing accounts and paying taxes correctly
This is often described informally as an insolvency practitioner conduct report, since the liquidator's own assessment forms most of the evidence the Insolvency Service relies on. Most directors who cooperated properly and kept reasonable records receive a report that raises no concerns at all.
What happens after the report is filed
In most cases, nothing further happens. The report is reviewed, no misconduct is identified, and the matter closes. You are not usually told this directly — the absence of contact is generally a good sign.
If the report flags concerns, the Insolvency Service may ask the liquidator for more information, or contact you directly. Directors sometimes only hear about an Insolvency Service investigation once it is already underway. Being asked questions does not mean disqualification will follow; it means the facts are being checked before any decision is made.
How reports can lead to disqualification
Where a report raises serious concerns — for example, evidence of trading while insolvent to the detriment of creditors, or misuse of company funds — the Insolvency Service can pursue disqualification proceedings. This is sometimes referred to as the CDDA conduct report process, named after the Company Directors Disqualification Act 1986 that governs it.
Disqualification is a court order, or an agreed undertaking, preventing someone from acting as a company director for a set period, typically two to fifteen years depending on the seriousness of the conduct. It is separate from, and more serious than, simply having your conduct reviewed.
For a fuller explanation of how this process works and what it means in practice, see Director Disqualification: What It Means. In some cases, creditors or the liquidator may also pursue a separate claim against a director personally — this is covered in Misfeasance Claims Against Directors.
How to give yourself the best position
You cannot control whether a report is filed — that happens regardless. But you can influence how it reads. Directors who act cooperatively and transparently are generally in a stronger position, whatever the outcome of the liquidation itself.
- Respond promptly to any requests from the liquidator for information, documents or explanations
- Hand over company records, including bank statements and accounting files, in full
- Keep a simple written account of key decisions taken as the company's position worsened, and why
- Avoid removing, altering or destroying any company documents once liquidation looks likely
- Speak to a regulated insolvency practitioner or solicitor early, rather than waiting for questions to arrive
None of this guarantees a particular outcome, but a cooperative, well-documented approach is consistently viewed more favourably than silence or delay.
Frequently asked questions
Can I see the director conduct report?
Not routinely. The report is confidential and prepared for the Insolvency Service, not published to directors, creditors or the public. If the Insolvency Service later raises specific concerns, you will normally be told what they are so you can respond.
Does a director conduct report mean I'm in trouble?
No. Every director of a liquidated company is reported on, regardless of how the company failed. Most reports raise no issues at all, and the majority of directors never hear anything further once the report has been filed.
How long does the process take?
The liquidator generally has three months from appointment to submit the initial report, though this can be extended. If the Insolvency Service investigates further, that process can take considerably longer, depending on the complexity of the company's affairs.
What triggers a closer look at my conduct?
Common triggers include unexplained gaps in company records, creditors treated very differently from one another, or trading that continued well after insolvency became apparent. A single missed payment or an honest misjudgement rarely leads anywhere on its own.
Should I get advice before the report is filed?
It is generally sensible to understand your position early, rather than waiting to be contacted. A regulated specialist can help you understand what is expected of you and respond to any requests with confidence.
This article is general information, not legal, financial or insolvency advice, and does not consider your specific circumstances. Every company's situation is different, so directors should speak to a regulated specialist about their own position.
If you would like to talk through what a director conduct report might mean for you, Harbourfirst can introduce you to a regulated insolvency practitioner or solicitor who can look at your circumstances directly — start an enquiry.