Former IoD Director General Disqualified for Covid Loan Abuse

A former director general of the Institute of Directors has been disqualified from serving as a company director following her involvement in the misuse of Covid-19 financial support. The Insolvency Service revealed that Anna Daroy obtained two Bounce Back Loans, each totaling £50,000, for her consultancy firm, Globepoint Associates Ltd, in May 2020. The loans were intended to support businesses during the pandemic but were misappropriated in this case.

In a report issued on Thursday, the Insolvency Service detailed that Daroy secured both loans within five days, just six months after her tenure at the Institute of Directors ended. The company, Globepoint Associates Ltd, subsequently entered liquidation in March 2023, leaving both loans unpaid.

Misuse of Government Support Scheme

Kevin Read, the chief investigator at the Insolvency Service, emphasized the severity of the situation. He stated, “Anna Daroy abused the Bounce Back Loan Scheme by obtaining two loans when businesses were entitled to just one.” He further noted that upon discovering the excess funds, Daroy should have taken immediate action to repay one of the loans.

The Bounce Back Loan Scheme was established to provide critical support to businesses struggling due to the pandemic. Read criticized the actions of Daroy, stating, “These loans were designed to provide vital support… not to be exploited by those who did not follow the terms of the scheme.”

Given her extensive experience in senior business leadership, Read pointed out that Daroy should have understood the implications of her actions. He affirmed that director disqualifications serve to protect the public from individuals who demonstrate unfit conduct.

Consequences and Future Implications

The Insolvency Service confirmed that the Business Secretary has accepted a disqualification undertaking from Daroy, which took effect on Wednesday. This ban prohibits her from participating in the promotion, formation, or management of any company without prior court approval.

The case serves as a stark reminder of the responsibilities that come with leadership roles, particularly during times of crisis. The Insolvency Service continues to monitor and investigate potential breaches of conduct within the business community to ensure compliance with regulations and the fair use of government support initiatives.