The 30 November deadline for existing directors to apply for a director identification number (Director ID) is creeping closer - don't get caught by ASIC penalties and make sure you apply in time.
In June 2020, the Australian Government introduced changes to the Corporations Act 2001 (Cth) requiring all existing and new directors to apply for a Director ID. All existing directors have until 30 November 2022, and intending directors must apply prior to being appointed.
What is a Director ID?
A Director ID is a unique 15-digit identifier given to a director that they will apply for once and keep forever. It has been created to help prevent the use of false or fraudulent director identities and help regulators trace director relationships over time.
A Director ID will not change even if a director changes companies, stops being a director, changes their name or moves residences.
Who needs a Director ID?
All company directors are required to have a Director ID. This includes directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation.
For directors of an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 who became directors on or before 31 October 2022, the deadline to apply for a Director ID is extended to 30 November 2023. However, those becoming directors from 1 November 2022 and onwards must apply before appointment.
What if a director does not comply?
There are a number of Director ID offences set out in the Corporations Act 2001, including:
- section 1272C - failing to have a director ID when required;
- section 1272D - failing to apply for a director ID when directed by the Registrar;
- section 1272G - applying for multiple director IDs; and
- section 1272H - misrepresenting a director ID.
Each of these offences carry a maximum civil penalty of $1,100,000 and possible criminal penalties of fines, imprisonment or both.
How to apply?
Each director must apply for their own Director ID to ensure the individual's identity can be verified. To apply go to the Australian Business Registry Services (ABRS) website at https://www.abrs.gov.au/director-identification-number.
Don't risk late penalties and get on top of Director ID requirements well before the deadline.
For further information please contact:
Angela Harvey, Partner
Phone: +61 2 9233 5544
Email: axh@swaab.com.au
Olivia Hobill Cole, Solicitor
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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