Britain will ban Australian financier Lex Greensill, founder of supply chain financing firm Greensill Capital, which collapsed with huge losses in 2021, from acting as a company director for nine years.
The company collapsed after one of its main insurers declined to renew its cover.
Its UK arm had liabilities of more than Stg1.6 billion ($A3 billion), causing heavy losses for investors and prompting lawsuits and regulatory probes.
“A nine-year ban is a significant period – above the average for director disqualifications – and reflects the serious nature of Lex Greensill’s conduct,” Insolvency Service chief executive Duncan Beach said in a statement on Thursday.
Greensill’s conduct breached his legal duty under British rules to exercise reasonable care, skill and diligence as a company director, the agency’s statement said.
Greensill signed a disqualification undertaking, a legally binding agreement where directors do not dispute certain facts to end court action, it said.
A six-week trial had been due to begin on June 8 but will no longer go ahead.
His ban, which comes into effect on June 23, prevents him acting as a director or being involved in the promotion, formation or management of a company, without the permission of the court.
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