This bug was fixed in the package cgroup-lite - 1.11

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cgroup-lite (1.11) xenial; urgency=medium

  * Mount name=systemd (LP: #1551923)

 -- Serge Hallyn <[email protected]>  Tue, 01 Mar 2016 12:05:26
-0800

** Changed in: cgroup-lite (Ubuntu)
       Status: Triaged => Fix Released

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https://bugs.launchpad.net/bugs/1551923

Title:
  mount name=systemd

Status in cgroup-lite package in Ubuntu:
  Fix Released

Bug description:
  On systems which are not running  systemd but want to launch systemd-
  based containers (and lxc is not built with cgmanager support),
  name=systemd needs to be mounted.  cgroup-lite is not mounting it
  because that does not show up in /proc/cgroups, so we have to check
  /proc/self/cgroup, or simply always mount it.

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