After many years of discussion and many attempts from the Federal Government to deter, investigate, penalise and prosecute illegal phoenix activity and other directorship-related misconduct, Director Identification Numbers are now finally required from 1 November 2021 onwards. Directors will now need to verify their own identities so that the tracking of relationships between directors and corporate entities is significantly more streamlined, allowing illegal activities to be scrutinised to a much higher degree.
To refer to our previous articles in relation to the topic, please click the links below.
These Director Identification Numbers (DIN) fall under the purview of the Australian Business Registry Services (ABRS), an initiative of the Federal Government’s MBR program, which seeks to modernise businesses and their interaction with government bodies.
All existing directors, registered on or before 31 October 2021, must comply with the new requirements and have a DIN by no later than 30 November 2022. This applies to directors of companies, registered foreign bodies, corporate trustees or super funds and registered Australian bodies and Aboriginal and Torres Strait Islander corporations.
It is recommended that all existing directors apply as soon as applications open from 1 November 2021. However, if you are appointed as a director after 31 October 2021 and before 4 April 2022 you must apply for a DIN within 28 days of your new appointment. From 5 April 2022 you must hold a DIN prior to your appointment as director.
Failure to comply can result in fines of up to $1.11 million.
Steps to apply for a DIN:
Should you have any queries regarding the rollout of this scheme, how to ensure your compliance with your legal requirements, or commercial and business law generally, Gavin Parsons and Associates can assist you. Please contact us today on (02) 9262 4471.