Context
The Insolvency Service has published details of two Director bans in relation to Leanne Richardson (who was the director of ESL Consultancy Services Ltd, which generated almost 38,000 spam text complaints) and Lex Greensill (who was a director of three companies within the Greensill Group, which collapsed in 2021 with combined liabilities of more than £1.6 bn).
Key points to note and next actions
- ESL Consultancy Services Ltd was fined £200,000 by the ICO but went into liquidation without paying. The firm promoted high-interest rate loans through the messages, which its affiliate was able to send to 546,000 phone numbers every single day.
- Richardson, of Horsham in West Sussex, has been banned as a company director for six years until 2032.
- In late 2020, Greensill caused the three companies concerned to enter into a series of transactions with US construction company Katerra that removed legal protections from a Credit Suisse fund’s investment.
- The Australian businessman also caused or allowed $440 million received in November 2020 to be used for purposes other than repaying the fund.
- Greensill’s conduct breached his legal duty under the Companies Act 2006 to exercise reasonable care, skill and diligence as a company director.
- A six-week trial was due to begin on Monday 8 June, but Lex Greensill signed a disqualification undertaking – a legally-binding agreement where directors do not dispute certain facts (for the purposes of the disqualification proceedings only) to end court action.
- The disqualification undertaking was accepted by the Secretary of State for Business and Trade on Tuesday 2 June and his ban comes into effect on Tuesday 23 June. It will last for nine years.