Lex Greensill banned from UK company director role for nine years
8 reported
Former financier Lex Greensill has been banned from running a UK company for nine years after being judged unfit due to the 2021 collapse of his supply chain invoicing firm, Greensill Capital. The Insolvency Service announced on Thursday that Greensill signed a disqualification undertaking, ending the case before a trial scheduled for 8 June. Greensill, a 49-year-old Australian former sugar farmer, had risen rapidly in finance by lending money to companies secured against unpaid invoices. His company collapsed into administration in March 2021 with liabilities exceeding £1.6 billion. The Insolvency Service stated Greensill breached his legal duty as a director, causing a $440 million loss to Credit Suisse. The ban is above the average for director disqualifications, according to the Insolvency Service.
What’s reported
Lex Greensill has been banned from running a UK company for nine years.
The ban follows the 2021 collapse of Greensill Capital, a £1.6bn supply chain invoicing firm.
The Insolvency Service said Greensill signed a disqualification undertaking, ending the case before a trial due on 8 June.
Greensill breached his legal duty to exercise reasonable care, skill and diligence as a director, causing a $440m loss to Credit Suisse.
The disqualification related to lending to Katerra, a US construction company, where Greensill directed transactions that removed legal protections from loan notes without required written consents.
The Insolvency Service had sought a disqualification of up to 15 years.
A spokesperson for Greensill said the matter concluded with no finding of dishonesty or bad faith.
Greensill still faces a separate civil action by administrators for Greensill Capital (UK).
Key figures
Lex Greensill, former financier and Australian former sugar farmer
Duncan Beach, chief executive at the Insolvency Service
David Cameron, former prime minister (mentioned in context of political scandal)
Masayoshi Son, Japanese investor (mentioned in context of Softbank backing)
Sanjeev Gupta, owner of Gupta Family Group (GFG) Alliance (mentioned in context of reliance on Greensill financing)
Sources: The Guardian
