A compressor shroud assembly in a turbine engine having a dynamically moveable shroud for encasing a rotor segment. The rotor segment comprises a bladed disc. The compressor shroud assembly maintains a clearance gap between the shroud and the blade tips of the bladed disc. The assembly comprises a static compressor casing, a shroud mounted to the casing, and an actuator mounted to the casing. The shroud comprises a flowpath boundary member spaced radially inward from the casing, the flowpath boundary member being moveable relative to the casing in a radial direction. The actuator is coupled to the shroud for effecting the movement of the flowpath boundary member.