Nearly half of UK directors bear sole responsibility for compliance

The research reveals that nearly half (47%) of all directors (those that are listed as directors on Companies House) feel they bear sole responsibility for compliance, even as a majority (54%) admit to a less-than-full understanding of their fundamental statutory duties under sections 170-177 of the Companies Act 2006. This underscores a compliance landscape where directors are personally absorbing stress and time, emphasised by the fact that so many governance requirements are predominantly conducted in-house.

As only 46% of directors have full understanding of their statutory obligations, many are seeking to close this knowledge gap. 70% have undertaken training in the past two years to improve their understanding, and a similar number (68%) are regularly taking time to review professional updates and news to bolster their knowledge. Nearly half (48%) also regularly discuss this with colleagues.

However, with directors shouldering more of the burden, heightened compliance needs through new regulations such as the Economic Corporate Crime and Transparency Act (ECCTA) will raise concerns over directors’ capacity to ensure their firms are complicit.

This is already taking its toll on business leaders, as more than a quarter (28%) believe their governance responsibilities are a significant impediment on focusing on their day job. As well as this, 18% say it causes them stress, and the same number say it eats into their personal time. While 45% believe current governance requirements are fine, they believe any increased requirements - such as ECCTA - will be difficult to handle.

Chelsea Chivers, Head of UK Entity Management at Law Debenture, commented: "It’s clear that there’s currently a compliance culture that is heavily dependent on individual directors, a situation that is neither sustainable nor ideal as many are overburdened, time-constrained and under-prepared for the next wave of regulatory complexity.

”As severe penalties potentially lie in wait under new regulations such as ECCTA, this is more than just a capacity issue - it points to a critical need for clearer risk distribution and robust internal support structures to ensure businesses don’t suffer serious consequences. Outsourcing compliance needs to a third-party provider  is often the most effective way of easing strain and complying with any governance requirements.”

To find out more about the governance solutions offered by Law Debenture contact chelsea.chivers@lawdeb.com 

Methodology

Research conducted by Censuswide in August 2025, surveying 500 UK Directors with at least 250 from large companies (250+ employees). All individuals surveyed are directors on the public record - that is, they are listed as directors on Companies House, and therefore ECCTA applies to them. 

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