WHAT ARE DIRECTOR IDENTIFICATION NUMBERS?
In an effort to curb phoenixing activity and fraud, the Commonwealth government are implementing director identification numbers ("DIN"). The scheme requires current and future company directors to register for their DIN, to be used as a special identifier for each company that individual is appointed to as director. In essence, the scheme will assist ASIC in determining repeat offenders of failed or insolvent entities, or where directors repeatedly breach the Corporations Act 2001 (Cth) ("the Act").
For most directors, registration is required by 31 November 2022. If you have not yet applied, avoid delay and apply now.
WHO NEEDS TO APPLY?
All directors appointed in accordance with the Act will need to apply for their DIN, including but not limited to directors of companies, Aboriginal and Torres Strait Islander corporations (registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth)), corporate trustees, charities and not-for profits. Australian Business Registry Services provides a consolidated list of those who are required, or excluded from registering as a director.
Please note that registration for your DIN is only required if you are an appointed director in accordance with ASIC's records, and does not apply if your job title is "director" only.
WHEN DO YOU NEED TO APPLY?
If you were appointed a director on or before 31 October 2021, you will need to apply for your DIN before 30 November 2022. Apply now and avoid committing an offence and risking a penalty.
Directors appointed between 1 November 2021 and 4 April 2022 must apply for their DIN within 28 days of your appointment. Directors appointed from 5 April 2022 must apply for their DIN before their appointment.
OFFENCES AND PENALTIES
Failure to apply for a DIN before the deadlines above may result in criminal or civil financial penalties of $13,200 (in the case of a criminal breach) and $1,100,000 (in the case of a civil breach).
For additional breaches relating to DIN numbers, please refer to the Australian Securities and Investments Commission website.
For more information on the DIN scheme, see our earlier articles:
- on the background to the DIN scheme and how to apply; or
- on the introduction of the DIN scheme.
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