The new era of UK corporate governance: what boards need to do in 2026

February 23, 2026

The new era of UK corporate governance: what boards need to do in 2026

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By Mike Raymond

Read time: 4 minutes

The UK has entered a new era of corporate transparency. Reforms at Companies House and wider government efforts to improve corporate transparency are putting corporate governance back at the top of the UK business agenda.

These changes raise the bar for accountability of directors of UK companies.

Our corporate law expert, Mike, considers what directors should be prioritising in 2026.

Enhanced record-keeping

Reforms under the Economic Crime and Corporate Transparency Act 2023 are currently being implemented in phases. The changes provide Companies House enhanced powers to query filings, reject inaccurate information and verify the identities of directors and persons with significant control (PSCs).

For directors, this means greater personal responsibility for the accuracy of filings. Directors run the risk of being investigated or having enforcement action taken against them where information filed is misleading or incomplete.

Boards will therefore need to ensure strong record keeping of its corporate registers and records. Implementing clear procedures and responsibility for record keeping will be key for statutory compliance.

The challenges of AI

UK businesses are increasingly adopting artificial intelligence (AI) in their systems from customer service automation to decision-making tools. From a governance perspective, AI poses new challenges including security and data privacy issues, data quality and IP infringement risks. There is also potential contractual liability and litigation risks if systems fail.

New technology and AI systems within a company will need appropriate oversight. Boards should ensure that appropriate assessments and data audits are carried out on the technology and software employed within their business to determine and manage risk. Ensuring that back-up plans and recovery procedures are in place for its technology and AI systems to protect against data loss and cyberattacks is also vital.

Directors should also ensure that contracts with suppliers of such technology are carefully checked to determine liability if the technology fails.

Environmental responsibility

UK boards are increasingly having to consider environmental impacts from their business operations. Under section 172 of the Companies Act 2006, directors must act in the way they consider, in good faith, would be most likely to promote the success of its company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the impact of its company’s operations on the community and the environment.

Implementing sustainable and ethical practices is also becoming a higher priority for businesses wanting to secure investment.

Directors should assess and document how their business minimises its impact on the environment, from its internal operations to its supply chain. Examples of environmental business practices include:

• encouraging recycling and reducing the amount of waste destined for landfill;
• developing greener products and services; and
• using sustainable packaging.

Governance checklist for boards in 2026

To implement good governance, boards should consider the following steps:

1. Maintain company registers – Ensure that internal records of directors, shareholders and PSCs are up to date and complete to ensure accurate filings at Companies House.
2. Prepare for identity verification requirements at Companies House – Boards should familiarise themselves with the new identity verification requirements at Companies House and ensure directors and PSCs undertake such procedures when required.

1. Review governance documents – Review articles of association, any shareholder agreements and board procedures to ensure that they are still reflective of the company’s current operations and are fit for purpose.
2. Improve board records – Ensure minutes of board meetings clearly document decision-making.
3. Strengthen oversight of operational risks – Ensure cyber risks and data security of systems (including AI) used in the business are regularly assessed and reported to the board, along with audits of your supply chain.
4. Assign explicit responsibility – Clearly define who at senior management or board level is responsible for managing different operational functions, such as IT, data protection and environment/sustainability.

In 2026, directors should no longer consider governance as a box-ticking exercise. It is about enhancing trust with stakeholders. Companies with robust controls and systems along with well-maintained records are better positioned to comply with statutory reforms and demonstrate good governance to its stakeholders and regulators.

If you would like tailored advice on strengthening your governance framework, please get in touch with our expert team via our contact form or on 02920 829 100 to discuss how we can support you and your business.