The Insolvency Service in the UK has commenced director disqualification proceedings against Greensill Capital founder Alexander “Lex” Greensill.
As reported in 2022, an investigation by the government agency could lead to disqualification proceedings being brought no later than March of this year.
Now it’s been confirmed that Greensill’s disqualification is being sought in court.
“We can confirm that the Insolvency Service has commenced director disqualification proceedings against Alexander (Lex) Greensill to have him disqualified from running or controlling companies for a period of up to 15 years in respect of his conduct as a director of Greensill Capital (UK) Limited and Greensill Limited,” a spokesperson said in an update.
Greensill Capital (UK) Limited and Greensill Limited were both part of the supply chain finance group that went bust three years ago. Lex Greensill previously blamed the non-renewal of his company’s trade credit insurance for its collapse.
The Insolvency Service noted that Greensill Capital (UK) Limited entered into administration in March 2021, while Greensill Limited entered into creditors’ voluntary liquidation in July 2021. Parent company Greensill Capital Pty Limited entered into administration in Australia on March 9, 2021, and into liquidation on April 22 of the same year.
Meanwhile the British agency said: “Officials at the Insolvency Service have issued disqualification proceedings on behalf of the Secretary of State for Business and Trade in accordance with her powers under the Company Directors Disqualification Act 1986. The application to court has been made in the public interest.
“Persons subject to disqualification orders and disqualification undertakings are bound by a range of restrictions, including not being able to be a director of any company registered in the UK or an overseas company that has connections with the UK, or being involved in the promotion, formation, or management of a company.”
What do you think about this story? Share your thoughts in the comments below.
