The Australian Government has introduced a new regime for Directors of Australian companies.
The legislative package introduced two things which will change how Australian companies operate:
- A new National Business Registry regime which will ensure the centralisation and modernisation of business registers; and
- The introduction of a new Director Identification Number (DIN) which requires a director to register after proving their identity and they will receive a unique identifier
The DIN will be a unique identifier which will help prevent the use of false or fraudulent director identities which has been a problem in the past from both a regulatory and legal perspective.
It will be a criminal offence if you do not apply when required to do so and on time.
Who needs to apply for a Director Identification Number?
If you are or planning to become a director of the following:
- A company
- A corporate trustee
- An Aboriginal and Torres Strait Islander corporation
- A charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
- An Australian body registered with Australian Securities and Investments Commission (ASIC)
- A foreign company registered with ASIC and carrying on business in Australia
- If you are acting in the capacity of an alternate director.
The following entities are not required to have a DIN:
- Sole traders or partnerships
- Company secretaries who are not directors
- An external administrator
- Directors of registered charities not registered with ASIC
- If you are referred to as a ‘director’ in your role/job title but are not an director appointed under the Corporations Act 2001 or the Corporations (Aboriginal and Torres Strait Islander) Act 2006
- An Officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation – unless the organisation is also a registered Australian body
How do I apply for a DIN?
You will only be required to apply for the DIN once.
The new Australian Business Registry Services (ABRS) will be responsible for administering the DIN.
ASIC will be responsible for enforcing director ID offences set out in the Corporations Act 2001.
ASIC will be able police for new director ID offences pursuant to the Corporations Act 2001:
- Failing to have a DIN when required to do so
- Failing to apply for a DIN when directed by the Registrar
- Applying for multiple DINs
- Misrepresenting a DIN
To apply you will have to use the myGovID app then to log onto the ABRS website.
When do I have to apply for a DIN?
When you have to apply by will depend on when you were appointed a director:
- If you are already a director have until 30 November 2022.
- If you were appointed a director between 1 November 2021 and 4 April 2022 you must apply within 28 days of your appointment.
- From 5 April 2022, if you intend to become a director you must apply before being appointed.
The new Australian Business Registry Services (ABRS) is responsible for administering the director ID initiative.
ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.
How can FC Lawyers help?
Our Business and Corporate team has extensive experience assisting directors in public and private companies along with charities and not-for-profits.
If you have any questions don’t hesitate to contact us.
The information provided in this article is for general information and educative purposes in summary form on legal topics which is current at the time it is published. The content does not constitute legal advice or recommendations and should not be relied upon as such. Whilst every care has been taken in the preparation of this article, FC Lawyers cannot accept responsibility for any errors, including those caused by negligence, in the material. We make no representations, statements or warranties about the accuracy or completeness of the information and you should not rely on it. You are advised to make your own independent inquiries regarding the accuracy of any information provided on this website. FC Lawyers does not guarantee, and accepts no legal responsibility whatsoever arising from or in connection to the accuracy, reliability, currency, correctness or completeness of any material contained in this article. Links to third party websites or articles does not constitute any endorsement or approval of those sites or the owners of those sites. Nothing in this article should be construed as granting any licence or right for you to use that content. You should consult the third party’s terms and conditions of use in relation to any third-party content. FC Lawyers disclaims all responsibility and all liability (including liability for negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way. Appropriate legal advice should always be obtained in actual situations.
Prefer to get in touch?
With offices in Brisbane, Sunshine Coast, North Queensland and Sydney, our team is well equipped to provide both advice and support across a broad range of legal areas.
