Lex Greensill banned from UK directorship for nine years

Australian financier Lex Greensill has been banned from serving as a company director in the United Kingdom for nine years. The disqualification, which will last until June 2035, follows an investigation into the collapse of his supply chain finance firm, Greensill Capital, in March 2021, which left liabilities exceeding £1.6 billion.

Greensill signed a legally binding disqualification undertaking this week, agreeing not to dispute certain facts for the purposes of the proceedings. This action averted a six-week High Court trial that was scheduled to begin next Monday. By signing the undertaking, he accepted the ban without admitting to dishonesty or bad faith.

The Insolvency Service, which brought the proceedings, stated that Greensill’s conduct breached his legal duties under the Companies Act 2006 to exercise reasonable care, skill, and diligence as a director. The agency’s chief executive, Duncan Beach, said the nine-year period is significantly above the average for such disqualifications and reflects the serious nature of the failures.

The core findings against Greensill center on transactions in late 2020. The Insolvency Service stated that he caused companies within the...