Ryan FowlerNew research from Law Debenture has revealed a striking gap between the compliance responsibilities felt by UK company directors and their actual understanding of statutory obligations.
The findings show that 47% of directors registered with Companies House believe they bear sole responsibility for compliance, while a majority (54%) admit they do not fully understand their duties under sections 170 to 177 of the Companies Act 2006.
The research paints a picture of directors increasingly absorbing compliance pressures within their own organisations. With only 46% of directors reporting full understanding of their statutory duties, many are taking steps to improve.
Around 70% have undertaken training in the past two years, and 68% regularly review professional updates and industry news to strengthen their knowledge. Nearly half (48%) also discuss compliance topics with colleagues to bridge the gap.
However, new regulations such as the Economic Corporate Crime and Transparency Act (ECCTA) are adding to these pressures.
The study found that more than a quarter of directors (28%) believe governance responsibilities significantly limit their ability to focus on core duties, while 18% say compliance obligations cause them stress and take up personal time.
Although 45% think existing requirements are manageable, many fear that additional obligations under ECCTA will stretch resources further.
Chelsea Chivers, head of UK entity management at Law Debenture, said: “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.”
Law Debenture’s findings highlight the growing strain on senior executives as corporate compliance becomes more complex and demanding.
The report suggests that while directors are increasingly aware of their responsibilities, many still lack the structural and educational support necessary to meet them effectively.
