Lex Greensill is facing up to a 15-year disqualification from running companies on the back of legal action taken by the UK’s Insolvency Service.
Following a probe into the directors of his failed firm, Greensill Capital, proceedings were opened by the public body on behalf of the business secretary on Thursday.
“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,” the Insolvency Service said.
Supply-chain finance specialist Greensill collapsed in March 2021 after the pandemic saw a rise in firms defaulting on loans and it was unable to repay over £100 million to Credit Suisse.
The collapse triggered a lobbying scandal after it emerged that now-foreign secretary David Cameron had tried to get Greensill access to the Covid-19 loan scheme.
Cameron had been an unpaid advisor to the firm and was later found to have not broken any rules.
“Lex Greensill recently issued proceedings against the Department for Business and Trade in the high court as a result of the Insolvency Service’s conduct during the investigation that led to this action,” a spokesperson said on his behalf.
“Mr Greensill rejects this action as wholly without merit and will robustly address it.”