UK bans financier Greensill from being company director
Britain will ban Australian financier Lex Greensill, founder of supply chain finance company Greensill Capital, which collapsed with huge losses in 2021, from serving as a company director for nine years.
The company collapsed after one of its main insurance companies refused to renew its cover.
The UK arm had liabilities of more than Stg1.6 billion (US$3 billion), resulting in heavy losses for investors and leading to lawsuits and regulatory investigations.
“The nine-year ban is a significant above-average period for director disqualifications and reflects the serious nature of Lex Greensill’s conduct,” Duncan Beach, director general of the Insolvency Service, said in a statement on Thursday.
Greensill’s conduct breached his statutory duty as a company director under British rules to use reasonable care, skill and diligence, the agency said in a statement.
Greensill was said to have signed the disqualification undertaking, a legally binding agreement in which the directors will not dispute certain facts, in order to end the court case.
The six-week trial was scheduled to begin on June 8 but will no longer continue.
His ban, which comes into force on June 23, prevents him from acting as a director or being involved in the promotion, establishment or management of a company without the permission of the court.
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