Explaining idea

Attention all Directors – start gearing up to apply for your Director Identification Number

Malcolm Campbell ||

You may recall our article post on 15 April 2021, headed, One step closer to the introduction of the Director Identification Number Regime, in which we discussed the legislation[1] that introduced a new director identification number regime.[2] We are now another step closer to practical implementation with the ability to apply for a director identification number opening up from 1 November 2021.

What is a Director Identification Number?

A director identification number is a unique 15-digit identifier that existing directors and future directors of a company or a registered body will be required to obtain. To obtain a director identification number, directors will be required to confirm their identity.  You will apply for this number once and will retain it permanently, regardless of whether you cease to be director, change companies, move interstate or overseas or change your name.  You will only have one director identification number and will require it to interact with any government agency.

Why do I need a director identification number?

The key purpose of being required to have a director identification number is traceability. A director’s history and relationships across different companies will be traceable. It will help regulators investigate a director’s involvement in unlawful activity. This is particularly important in respect of investigating illegal phoenix activities,[3] which is where a company’s liabilities are deliberately avoided by shutting down an indebted company and transferring its assets to a new company. Having traceable identification numbers will also prevent the appointment of fictitious directors.

The Relevant Timeline

Australian Business Registry Services (ABRS) provides the following timelines in terms of when to apply for your director identification number[4]:

Date you become a director

Date by which you must apply

On or before 31 October 2021

By 30 November 2022

Between 1 November 2021 and 4 April 2022

Within 28 days of appointment

From 5 April 2022

Before appointment

How to apply

ABRS provides details on how to apply, indicating that the fastest way to apply is to set up a myGovID account. It is highlighted that this is different from a myGov account. This is the first step and something you can do prior to 1 November 2021[5].  This will be in anticipation of applying online for your director identification number at the relevant time. As a tip, have some identification documents handy to step up your myGovID account, such as a current passport and driver licence.

How can we help?

If you require advice on the director identification number requirements, please do not hesitate to reach out to a member of Coleman Greig’s Commercial Advice team, who would be more than happy to assist you.

This material is provided by Coleman Greig Lawyers as general information only in summary form on legal topics current at the time of first publication. The contents do not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought in particular matters.


[1] Part 9.1A of the Corporations Act 2001 (Cth), which was inserted into the Corporations Act 2001 (Cth) by Schedule 2 of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth)

[2] https://www.colemangreig.com.au/BlogPost-1672-one-step-closer-to-the-introduction-of-the-director-identification-number-regime.aspx

[4] https://www.abrs.gov.au/director-identification-number/who-needs-apply-and-when

[5] https://www.abrs.gov.au/director-identification-number/apply-director-identification-number

Share:

Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.

Categories
Archives
Author

More posts

SafeWork NSW
SafeWork NSW releases new strategy to address psychosocial hazards

On 22 May 2024 SafeWork NSW introduced a new strategy to address psychological and psychosocial hazards. The SafeWork NSW Psychological Health and Safety Strategy 2024-2026 establishes new supports for employers regarding their duties in preventing psychosocial harm in the workplace.

roles in the strata scheme
Understanding roles in the strata scheme

A strata scheme is a building or group of buildings that have been divided into lots which can be apartments, villas, offices, units or townhouses. This will be articulated in the strata plan.

Airbnb home
Can I put my home on Airbnb?

Airbnb is a form of short-term rental accommodation. To add your property to Airbnb in NSW, you are required to meet several laws and regulations governing short-term rentals.

liquidators required to seek approval
When are liquidators required to seek approval to retain legal counsel?

When does a liquidator (or the company he or she is appointed to) need court, creditor, or committee approval to validly retain a solicitor to act in a liquidation matter which is likely to extend for longer than three months?  The answer to this question has only recently been settled.

Proposed changes to building
Proposed changes to building and construction law in NSW

The Building Bill 2022 (the Bill) is the key avenue through which the NSW Government has proposed to reshape the culture of the building and construction industry by eliminating poor performance and improving the quality of building statewide.

Dismiss an employee
Can you dismiss an employee who fails to return to the office?

Slowly but surely, most employers are requiring employees to return to the office for at least a portion of their working week. Some employers continue to struggle with employees resistant to returning to the office or those who have an expectation that they can continue to work from home whenever it suits them.

Phoenixing in Construction
New powers to combat phoenixing in construction

The rise of phoenixing in the building and construction industry in Australia in recent years has proved a significant challenge to regulators. Mismanagement of time or cashflow can quickly propel businesses into insolvency.

© 2024 Coleman Greig Lawyers  |  Sitemap  |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230