NEW DIRECTOR ID CODE

Article by Nadia Maynard

The Corporations Act 2001 (Cth) has introduced a new requirement for all directors under the new regime to Part 9.1A. This new requirement has been implemented to assist in preventing the use of false or fraudulent director identities.

Company directors must verify their identity by obtaining a director identification (Director ID) number which is a 15-digit identifier given to a director or an individual who intends to become a director. The director will only be required to apply for the Director ID once and it will keep the Director ID forever.

Which directors are required to apply for a Director ID?

All directors of a company, registered Australian body (ie SMSF and body corporates), registered foreign company or Aboriginal and Torres Strait Islander corporation must have a Director ID.

If you are a sole trader, you will not be required to apply for a Director’s ID unless you change your structure.

When must I apply for a Directors ID and where do I apply?

There are different deadlines of when you must apply, and it depends on when you were appointed as a director:

• Existing directors have until 30 November 2022 to apply.
  
• Directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
  
• From 5 April 2022, intending directors must apply before being appointed.

A director must apply via the Australian Business Registry Services (ABRS). The application will request that you link and/or set up your myGovID to the ABRS and provide information such as tax file number (TFN), residential address and documents to verify your identity (ie bank account details, dividend statement etc).

It is a criminal offence if you do not apply on time. ASIC is responsible for enforcing Director ID offences. Holdstock Law urges all directors to apply for a Directors ID immediately.

If you have any questions regarding the new Director ID requirement, please do not hesitate to contact Holdstock Law.