The Insolvency Service has begun proceedings against former directors of Kids Company, including Camila Batmanghelidjh and Alan Yentob

Directors of a failed children’s charity are set to face sanction.

The Insolvency Service has begun proceedings against the former directors of Kids Company, which collapsed amidst controversy in August 2015.

Former chief executive Camila Batmanghelidjh and ex-BBC creative director Alan Yentob are among those who could face being banned from serving as directors of companies for up to six years.

Kids Company employed more than 600 people but closed two years ago after it was beset by financial mismanagement and organisational problems. High-profile supporters included former prime minister David Cameron.

The House of Commons Public Administration and Constitutional Affairs Committee (PACAC) found that it struggled with its finances, its client numbers made little sense, there was a culture of lavish spending and abuses of power.

On Monday, The Insolvency Service announced that proceedings are being brought against all nine former directors.

A spokesman said: “We can confirm that the Insolvency Service has written to the former directors of Keeping Kids Company informing them that the Business Secretary intends to bring proceedings to have them disqualified from running or controlling companies for periods of between two-and-a-half and six years.

“As this matter will now be tested in the court it is not appropriate to comment further.”

Alongside Batmanghelidjh and Yentob, Sunetra Devi Atkinson, Erica Jane Bolton, Richard Gordonn Handover, Vincent Gerald O’Brien, Francesca Mary Robinson, Jane Tyler and Andrew Webster are listed in the proccedings.

The charity supported vulnerable inner-city children and young people in London, Liverpool and Bristol.

Its collapse was triggered by a police investigation into allegations of physical and sexual abuse – something founder Batmanghelidjh vehemently denied – and a police investigation found no evidence of criminality.