Small firms owed money after a director is banned face a new admin bite in Northern Ireland. A Department for the Economy rule will allow time‑based fees to be taken when officials distribute compensation secured from disqualified directors. The Statutory Rule was made on 11 February 2026 and will take effect the day after MLAs affirm it.

Formally titled the Disqualified Directors Compensation Orders (Fees) Order (Northern Ireland) 2026, it covers payments made under compensation orders or compensation undertakings. The Department will charge for the work of distributing recovered sums to creditors, with the fee lifted from the money before any cheques go out. VAT is added where it applies. The Department of Finance has concurred; the instrument bears the seals of Economy Minister Dr Caoimhe Archibald and senior finance officer Patrick Neeson.

The calculation is straight from the Order. Officials record the time spent by grade, apply the hourly rate set in the Schedule, add any necessary expenses, then divide the total equally between every creditor named in the court order or undertaking. In plain terms: if ten creditors are listed, each shoulders a tenth of the distribution bill regardless of claim size.

For creditors, that matters. A sole trader in Coleraine or a tooling supplier in Sunderland could both be named on a Northern Ireland compensation order. Each would see the same deduction share before payment lands, even if one claim is modest and the other larger. The Department’s note says no separate regulatory impact assessment was produced because no impact on the private or voluntary sectors is foreseen, a point many SMEs will read with interest.

This fee mechanism sits on top of rules introduced in 2025 that let Northern Ireland pursue compensation from disqualified directors where misconduct caused losses. Under those rules, compensation can be directed to named creditors, a class of creditors or, in some cases, into the company’s assets for wider distribution. England and Wales have operated a similar approach for several years. (napiers.com)

It also continues a wider clean‑up of insolvency protections in the region. Late last year, Northern Ireland lifted the mandatory bond cover for insolvency practitioners to £750,000 and introduced SONIA‑linked interest on losses from fraud or dishonesty - reforms aimed squarely at improving creditor outcomes. (insidecorporateinsolvency.co.uk)

What to do now if you’re waiting on money. First, check you are actually named as a creditor in any compensation order or undertaking - distribution only covers those listed. Keep contact details and banking information current with the Insolvency Service, retain invoices and statements that evidence your loss, and respond quickly to any verification letters. The Department’s “Guide for creditors” is a straightforward primer on how Northern Ireland handles payouts. (economy-ni.gov.uk)

For Northern suppliers with customers across the Irish Sea, the cross‑border angle is simple: if a Northern Ireland director is disqualified and a compensation order follows, any North of England firm named as a creditor falls under these rules. Expect the Department to deduct its time‑costed fee - split equally among those listed - before any payment is made.

What happens next. The Order is subject to the Assembly’s affirmative procedure and comes into force the day after a resolution is passed. We’ll update readers once commencement is confirmed and publish any practical guidance the Department issues alongside implementation.