Did You Know…
ASIC has introduced Director ID Numbers
ASIC has announced that directors of companies, registered Australian bodies, registered foreign companies and Aboriginal or Torres Strait Islander corporations will need a director identification number, or director ID. This means an extra step to advise clients – or potential clients of when delivering advice or legal services.
Why do we need ID numbers for directors? It’s hoped that the director ID – and the identity verification process that accompanies it – will help to prevent the use of false or fraudulent director identities, and help external administrators track the activities of the director over time – including any unlawful activities such as illegal phoenix activity. One of the difficulties in tracking illegal phoenix activity has been dodgy directors using slight variations of their names and addresses to make it difficult to connect them to their failed companies.
When directors must apply will depend on their date of appointment:
- Directors appointed on or before 31 October 2021 will need to apply by 30 November 2022;
- Directors appointed between 1 November 2021 and 4 April 2022 will need to apply within 28 days of appointment; and
- Directors appointed from 5 April 2022 will need to apply before their appointment.
Applications for director IDs can be made online using the myGovID app (not to be confused with the myGov app).
Directors who fail to comply with the new requirements and hold a director ID may find themselves faced with an infringement notice and possibly, civil and/or criminal prosecution.
