Former chief of UK directors' lobby group banned for COVID loan abuse

By Kirstin Ridley

LONDON (Reuters) -A former boss of one of Britain's oldest business groups has been banned from holding company directorships for 11 years after abusing a state-backed emergency loan scheme for businesses struggling during the COVID pandemic.

Britain's Insolvency Service said on Thursday it had barred Anna Daroy, a 61-year-old former director general of the Institute of Directors (IoD), after she secured two 50,000 pound ($68,085) "Bounce Back" loans for a management consultancy in 2020 when companies were only entitled to one.

Banks handed out tens of billions of pounds of state-backed funds to support companies hit by pandemic lockdowns. But a lack of stringent eligibility checks and oversight attracted widespread scams - and a wave of criticism.

Daroy, who was shortlisted for the Women's Business Club "Businesswoman of the Year" award last year after a 35-year career advising boards and executive teams, should have at least repaid one of the loans that were secured from separate banks over a five-day period, the Insolvency Service said.

The management consultancy, Globepoint Associates Ltd, went into liquidation in March 2023 with both loans outstanding.

"As someone with such extensive experience in senior business leadership roles, Daroy should have known better than to break the rules," said Kevin Read, chief investigator at the Insolvency Service.

"Bounce Back loans were designed to provide vital support to struggling businesses during the pandemic, not to be exploited by those who did not follow the terms of the scheme."

Daroy, who was interim chief operating officer and interim director general of the IoD from October 2018 to November 2019, did not immediately respond to a request for comment sent over LinkedIn.

The Insolvency Service has disqualified more than 2,400 company directors for abusing COVID financial support schemes.

An IoD spokesperson said the IoD did not comment on individual members but required the highest standards of conduct. Any member disqualified as a director would have their membership terminated, the spokesperson added.

($1 = 0.7344 pounds)

(Reporting by Kirstin Ridley; editing by Philippa Fletcher)