The Insolvency Service has begun legal action to have Lex Greensill disqualified from running companies for up to 15 years after the outcome of an investigation into the directors of his failed finance firm.
The government agency said it had issued disqualification proceedings on behalf of the business secretary against the former Australian sugar farmer, who founded the Greensill group of companies.
Greensill Capital – which specialised in supply-chain finance, where companies borrow money to pay suppliers – raised huge amounts from banks including Credit Suisse before it collapsed in March 2021.
It became the subject of one of the UK’s biggest lobbying scandals after it emerged that David Cameron, the former prime minister who is now foreign secretary, had sent 62 messages during the Covid pandemic in 2020 to lobby ministers and officials asking for the then-struggling Greensill to be allowed access to the government’s coronavirus loan support scheme.
The now Lord Cameron had joined Greensill as a lobbyist and adviser two years after he left Downing Street. The Treasury select committee found in July 2021 that Cameron had shown a “significant lack of judgment” in his actions to help the company, for which he worked and in which he owned stock options.
In a statement at the time, Cameron said he had always acted in good faith, and had no idea until the end of 2020 that Greensill Capital was in danger of failure.
The Insolvency Service said on Thursday it had issued disqualification proceedings on behalf of the business secretary using powers under the Company Directors Disqualification Act 1986.
Records at the high court in London show a director disqualification claim has been launched against Greensill by the government, which is represented by the law firm Howes Percival. Greensill is represented by the law firm Ellerman.
The records also show Greensill has launched a legal claim against the Department for Business and Trade for alleged “misuse of private information”, though further details of the case are not yet available publicly.
Under the Company Directors Disqualification Act 1986, a court can make an order banning an individual from being a director or a director may offer to give a disqualification undertaking. Disqualification can last for up to 15 years.
The Insolvency Service said: “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.”
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It said it could not comment further as the case was ongoing.
A spokesperson for Lex Greensill said: “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.
“Mr Greensill rejects this action as wholly without merit and will robustly address it.”
