Former IoD chief banned from directorships for 11 years over Covid loan fraud

A former head of Britain's Institute of Directors has been barred from serving as a company director for 11 years after abusing the Covid Bounce Back Loan scheme, the Insolvency Service said.

Anna Daroy, 61, who led the IoD as director general in 2018-19, secured two £50,000 Bounce Back Loans for Globepoint Associates, a consultancy that later went into liquidation in 2023. The loans were obtained from separate banks within a five-day window, even though the Covid scheme generally allowed only one loan per business. The Insolvency Service said she should have repaid at least one of the two loans.

The case is part of a broader crackdown on Covid-related fraud. The Insolvency Service has disqualified more than 2,400 company directors for abusing Covid financial support schemes. Banks distributed tens of billions of pounds through state-backed facilities during the pandemic, and lax eligibility checks and oversight contributed to a wave of misuse.

Daroy had a 35-year career advising boards and executive teams and was director general of the IoD in 2018-19. She was shortlisted for the Women's Business Club’s 'Businesswoman of the Year' award last year, according to contemporaneous profiles, reflecting her standing in the business community.

Her disqualification was announced as part of ongoing enforcement against misuse of Covid-19 support, underscoring authorities' efforts to hold individuals accountable for improper use of emergency funds.

Globepoint Associates, the consultancy tied to the loans, went into liquidation in 2023, a development noted by the Insolvency Service as part of the record in the case.

The Insolvency Service said the case highlights how Covid loan schemes, designed to keep firms afloat, were vulnerable to abuse when eligibility checks and oversight were not stringent.