Director identification numbers become a reality

In June 2020, the Federal Government passed the Treasury Laws Amendment (Registries modernisation and other measures) Act 2020 (No.69, 2020) – Schedule 2 (Act) which introduced the requirement for every director to obtain a Director Identification Number (DIN).  A DIN is a unique 15-digit identification number given to each director.   A director must only apply for a DIN once and will keep the number even if they stop being a director, change company, are the director of multiple companies or move interstate or overseas.  The purpose of a DIN is to allow for data collection to monitor director registrations and detect disqualified or fraudulent directors.  

What sections were added to the Act regarding DINs?

The Act inserted Part 9.1A to the Corporations Act 2001 (Cth) (Corporations Act) and Part 6-7A of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Corp Act) which incorporates the requirements to obtain a DIN and offences for failing to do so.

Sections 1272A-H of the Corporations Act provide information relating to infringement, misrepresentation, requirements, eligible officers, and application periods.  Part 6-7A of the Corp Act contains similar provisions.

When must Directors have a DIN?

A DIN is mandatory for all directors and alternate directors.  The date when a DIN is required will depend on the date that the person became a director.

Date of directorship DIN application deadline
On or before 31 October 2021 By 30 November 2022
Between 1 November 2021 and 4 April 2022 Within 28 days of appointment as a director
From 5 April 2022 Before appointment as a director

If directors do not obtain a DIN within the required timeframe or if directed by the Registrar to do so, there are civil and criminal penalties that may apply.  The Registrar may also issue an infringement notice.

How to apply for a DIN

There is no fee to apply for a DIN.   Applications will be available from November 2021 through the electronic platform provided by the Registrar at ABRS.  A director must first have a myGovID before starting the application process.  It is a requirement that a director apply for themselves to verify their identity.  However, if the Registrar is satisfied that the director is unable to make the application themselves, it may be made on their behalf.

What do directors need to provide?

The Registrar may request the following documents for identity verification purposes when applying for a DIN:

  • names and former names;
  • addresses and former addresses;
  • contact details;
  • date and place of birth; and
  • tax file number.

When making an application, the director must make a declaration that:

  • they are the applicant identified in the application;
  • the information provided is true and correct;
  • the individual is an eligible officer, or intends to become an eligible officer within twelve (12) months of applying for a DIN; and
  • the individual does not already have a DIN, or the individual has been directed by the Registrar to apply, or apply again, for a DIN.

Links and further references

Related articles

Director Identification Numbers – more red tape?

 

Legislation

Corporations Act 2001 (Cth)

Corporations (Aboriginal and Torres Strait Islander) Act 2006

Treasury Laws Amendment (Registries modernisation and other measure) Act 2020 (No.69, 2020) – Schedule 2

Other sources

Australian Business Registry Service

Further information

If you need advice in relation to the new laws regarding Director Identification Numbers, contact us for a confidential and obligation free and discussion:

 

Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.

Legal Practice Director

Telephone: (07) 3221 0013 (Preferred)

Mobile: 0419 726 535

e: mburrows@dundaslawyers.com.au

 

Disclaimer

This article contains general commentary only.   You should not rely on the commentary as legal advice.   Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.

Send this to a friend