Lex Greensill, the Australian financier whose lending firm Greensill Capital collapsed, has been banned from directing companies in the UK for nine years following an investigation into his conduct. The businessman agreed to the disqualification, ending planned court action, the Insolvency Service confirmed.
Background of the case
Mr Greensill had previously challenged the Government’s bid to impose a 12-year ban, with a six-week High Court trial scheduled to begin on Monday. He also made an unsuccessful attempt in March to have the disqualification proceedings thrown out before a trial could commence.
As the founder and chief executive of Greensill Group, whose UK arm entered administration in March 2021, Mr Greensill faced proceedings initiated by the Department for Business and Trade (DBT) in 2024. These followed an Insolvency Service investigation into various insolvent companies within the group, alleging misconduct on his part.
Financial impact
Greensill Capital in the UK had liabilities of more than £1.6 billion at the time of entering administration. The Insolvency Service found that Mr Greensill’s conduct breached his legal duties to exert reasonable care, skill and diligence as a company director. This is largely because of his actions which allowed 440 million US dollars (£327 million) received in November 2020 to be used for purposes other than redeeming a series of notes owed to European bank Credit Suisse’s fund. The notes all defaulted when they fell due, resulting in a loss of 440 million dollars to the Credit Suisse fund.
Legal proceedings and outcome
Lawyers for the financier had previously argued that his conduct did not cause the company insolvencies and that the DBT had not conducted a “fair investigation”. However, Mr Greensill’s signing of a “disqualification undertaking” means he has chosen not to dispute certain facts to end court action. The undertaking was accepted by the Business Secretary, and the ban will take effect on 23 June. It means he cannot act as a director or be involved in the promotion, formation or management of a company in the UK without the permission of the court.
Reactions
Duncan Beach, chief executive of the Insolvency Service, said: “Director disqualifications exist to protect the public from those who have demonstrated they are unfit to run companies. A nine-year ban is a significant period – above the average for director disqualifications – and reflects the serious nature of Lex Greensill’s conduct.”
A spokesman for Mr Greensill said: “After four years of investigation, this matter has concluded with no finding that Mr Greensill acted dishonestly or in bad faith. Separately, Mr Greensill’s proceedings against the Department for Business and Trade, over the unlawful disclosure of his private information during the Insolvency Service’s investigation, continue. The Department has admitted that the disclosure was unlawful and has accepted liability for it.”
Political connections
Lord Cameron served as an adviser to Greensill Capital prior to his recent return to government as Foreign Secretary under Rishi Sunak. The Conservative peer was reportedly paid millions for his advisory role, an assertion he has denied. Lord Cameron previously faced questions about his relationship with Mr Greensill upon rejoining the government, particularly given that Mr Greensill was granted an office in Downing Street during Lord Cameron's premiership.
