Visa firm sues ex-boss for £6m over alleged improper use of profit

The firm that runs visa services for the government is suing its former chief executive for £6m over her alleged improper use of profits earned during a period of record immigration.

- Daniel Boffey

Cloud Bai-Yun is accused by Ecctis of a breach of fiduciary duty, according to court filings. The company claims she oversaw profit-making on a not-for-profit government contract and this money was ultimately used in 2021 to pay her £17.6m for her shares in Ecctis's holding company.

Ecctis's claim against Bai-Yun is for £4.6m, plus more than £2m in interest. Bai-Yun said: "I wholly deny the allegations made against me by the new management of Ecctis and will be defending myself in court."

Ecctis runs the official language tests and qualification recognition services for those applying for certain UK visas or permissions.

Under a not-for-profit contract with the Department for Education (DfE), it is claimed Ecctis was obliged to reinvest any profit earned or to keep a maximum of half of the net gain in reserve. It is alleged that Bai-Yun, who was chief executive from 2014 and a director since 2006, instead improperly approved large dividend payments in 2016 and 2017 to a holding company.