# Insolvency (Amendment) Act (Northern Ireland) 2026, Paragraph 92

Extent: N.I.
Status: prospective

After modified Article 19 insert—
“Compensation orders and undertakings
Compensation orders and undertakings
19A. (1) The High Court may make a compensation order against a person on the application of the Department if the Court is satisfied that the conditions mentioned in paragraph (3) are met.
(2) If it appears to the Department that the conditions mentioned in paragraph (3) are met in respect of a person who has offered to give the Department a compensation undertaking, the Department may accept the undertaking instead of applying for, or proceeding with an application for, a compensation order.
(3) The conditions are that—
(a) the person is subject to a disqualification order or disqualification undertaking under this Order, and
(b) conduct for which the person is subject to the order or undertaking has caused loss to one or more creditors of an insolvent partnership of which the person has at any time been an officer.
(4) An “insolvent partnership” is a partnership that is or has been insolvent; and a partnership becomes insolvent if—
(a) the partnership goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up, or
(b) the partnership enters administration.
(5) The Department may apply for a compensation order at any time before the end of the period of 2 years beginning with the date on which the disqualification order referred to in paragraph (3)(a) was made, or the disqualification undertaking referred to in that paragraph was accepted.
(6) In the case of a person subject to a disqualification order under Article 11A, or a disqualification undertaking under Article 11C, the reference in paragraph (3)(b) to conduct is a reference to the conduct of the main transgressor in relation to which the person has exercised the requisite amount of influence.
Amounts payable under compensation orders and undertakings
19B. (1) A compensation order is an order requiring the person against whom it is made to pay an amount specified in the order—
(a) to the Department for the benefit of—
(i) a creditor or creditors specified in the order;
(ii) a class or classes of creditor so specified;
(b) as a contribution to the assets of a partnership so specified.
(2) A compensation undertaking is an undertaking to pay an amount specified in the undertaking—
(a) to the Department for the benefit of—
(i) a creditor or creditors specified in the undertaking;
(ii) a class or classes of creditor so specified;
(b) as a contribution to the assets of a partnership so specified.
(3) When specifying an amount the High Court (in the case of an order) and the Department (in the case of an undertaking) must in particular have regard to—
(a) the amount of the loss caused;
(b) the nature of the conduct mentioned in Article 19A(3)(b);
(c) whether the person has made any other financial contribution in recompense for the conduct (whether under a statutory provision or otherwise).
(4) An amount payable by virtue of paragraph (2) under a compensation undertaking is recoverable as if payable under a court order.
(5) An amount payable under a compensation order or compensation undertaking is provable as a bankruptcy debt.
Supplementary provisions
Application for disqualification order
20. (1) A person intending to apply for the making of a disqualification order by the High Court must give not less than 10 days’ notice of that person’s intention to the person against whom the order is sought; and on the hearing of the application the last-mentioned person may appear and himself or herself give evidence or call witnesses.
(3) On the hearing of an application made by a person falling within paragraph (4) the applicant must appear and call the attention of the High Court to any matters which seem to be relevant, and may give evidence or call witnesses.
(4) The following fall within this paragraph—
(a) the Department;
(b) the official receiver.”.

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Source: https://www.legislation.gov.uk/nia/2026/6/schedule/4/paragraph/92 (the official version)
Page: https://openlegislation.uk/insolvency-amendment-act-northern-ireland-2026/schedule-4/paragraph-92
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.