Directors Warned to Verify Identities with Companies House Following First Insolvency Service Prosecutions

The UK corporate regulatory landscape has reached a significant milestone. In the first court action of its kind brought by the Insolvency Service, three UK company directors have been convicted and fined at City of London Magistrates’ Court for failing to comply with mandatory Companies House identity verification rules.

This landmark action serves as an unmistakable warning to business leaders across the country: identity verification is a strict legal duty, not an optional admin task. Failing to comply or allowing unverified co-directors to act can now lead directly to criminal records, personal fines, and severe reputational damage.

Landmark Court Action: What Happened?

The convictions centre around directors who failed to complete the mandatory identity verification process introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

Companies House recently published details of the cases in their recent press release on 17th September 2026:

  •  White (Reading Properties) Limited:
    • Director Jill White continued to make board-level decisions and sign financial accounts without verifying her identity. She only completed verification nine months past her deadline, right before her court date. She was fined and ordered to pay court costs.
    • Co-director Marc Dillon had successfully verified his own identity, but was prosecuted anyway. Why? Because as a director, he had a legal responsibility to prevent an unverified co-director from acting on behalf of the company. He was fined £307 plus costs.
  • J Isogony Apparel Limited:
    • Director Modinat Banjo signed and delivered official company accounts while remaining unverified, missing her compliance deadline by months. She was convicted, fined, and ordered to pay costs.

In addition to identity verification offences, both companies were convicted for failing to file their Confirmation Statements on time.

“Identity verification is a cornerstone of the reforms being introduced under the Economic Crime and Corporate Transparency Act… These cases send a clear message that identity verification is not optional.”

— Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House

The Rules: What Are Directors Required to Do?

Under the ECCTA reforms, Companies House requires mandatory identity verification to ensure those running UK entities are who they claim to be, safeguarding the register against fraud and misuse.

  1. New Directors

Since 18 November 2025, all newly appointed directors must complete identity verification before taking up their appointment or acting on behalf of the company.

      2. Existing Directors

Existing directors are required to verify their identity during a 12-month transition period, specifically when filing the company’s next Confirmation Statement.

      3. Personal & Joint Board Responsibility

As highlighted by Marc Dillon’s prosecution, directors are not only responsible for their own individual compliance—they are legally accountable for ensuring no unverified individual acts as a director on their company’s board.

Key Takeaways for UK Business Owners & Boards

  1.  There Is No Opt-Out: Regulators are actively prosecuting non-compliant directors. Ignorance of the deadline is not a valid legal defence.
  2. Co-Directors Share Legal Liability: If you are verified but turn a blind eye to an unverified colleague who continues signing accounts or making decisions, you can be prosecuted alongside them.
  3. Confirmation Statements Are Critical Trigger Points: Identity verification status is tied directly to your annual confirmation statement. Missed filings compound your legal risks.

 

Ensure Full Compliance with CRO Corporate Services

 Navigating complex corporate regulations shouldn’t disrupt your daily business operations. At CRO we provide expert support to help directors, accountancy firms, and legal professionals stay fully compliant with Companies House requirements.

As a registered ACSP, CRO can support you through the IDV process.

 Our fee for this service is just £25 +vat

For more information about our IDV service, please contact

Alice Spencer

0161 440 8884

[email protected]