On 4 April 2021, changes to the Corporations Act 2001 saw to the implementation of the new requirement for company directors to have a director identification number.
What is a director identification number?
A director ID is a unique identifier given to a director who has verified their identity with the Australian Business Registry Services (ARBS) which can be valid forever regardless of changes in position, companies, countries, or other circumstances.
With the introduction of the director’s ID initiative, the government aimed to promote good corporate conduct by preventing fraud and hence facilitating confidence amongst a workplace.
Who needs to apply for a DIN?
Required for eligible officers (directors or alternate directors acting in that capacity) of:
- a company, a registered Australian body, or a registered foreign company under the Corporations Act 2001;
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
The change will fully take effect on 5 April 2022, ensuring all individuals intending to take a directorial role must apply for their director ID before being formally appointed to this position. Failure to do so is a criminal offence to which the Australian Securities and Investments Commission (ASIC) will be responsible for enforcing further measures.
If you or someone you know wish to discuss this matter, then please contact our experienced solicitors at 02 8999 9809 for assistance.