fbpx
Blog,Legal,News

Director Identification Number

Director Identification Number

 

On 1 November 2021, the Director Identification Number regime went live.  ‘Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth)’ requires that all company directors must obtain a Director Identification Number (“DIN”).

 

A DIN is a 15 digit unique identifier given to a director once they have verified and certified their identity with the Australian Business Registry Services (ABRS). 

 

Who needs one and when?

 

All directors need to apply for their DIN which they will keep forever. You must also apply if you are an alternate director or are planning to become a director soon.

 

If you have become a director on or before 30 October 2021, you have until 30 November 2022 to apply. If you become a director between 1 November 2021 and 4 April 2022, you must apply within 28 days of your appointment. Any appointment after 4 April 2022, DIN needs to be obtained prior to the appointment.

 

For more information on dates, visit: https://www.abrs.gov.au/director-identification-number/who-needs-apply-and-when

 

What is the purpose of the DIN?

 

The DIN is being implemented so that we as a collective can:

       Avoid the use of false director identities, which allow for illegal activity.

       More easily identify directors who are engaging in illegal behaviour, such as phoenixing activities.

       More easily trace and regular directors’ relations with companies and individuals.

 

Further, the creation of a DIN protects directors’ identities as it means that they can be placed and identified on the register, without disclosing private and sensitive information that is currently available – such as dates of birth and residential addresses.

 

How to apply for a DIN?

 

All directors must complete their DIN application themselves.

 

Generally, this will include:

 

1. Downloading the myGOVID app.

2. Gathering your relevant documents, including your TFN, residential address and identify verification documents which have been certified (by a lawyer, or justice of peace).

3. Completing the application online, by phone or through paper form.

 

We recommend completing it online through my GOVID. Please note that my GOVID is different to MyGov Website.

 

If your application is satisfactory, then your DIN will be granted.

 

What happens if you do not apply?

 

If a director does not apply for their DIN by the appropriate times, you can face both criminal and civil penalties under section 127 of the Corporations Act 2001 (Cth). For example, a failure to obtain a DIN can attract a civil penalty of to $1,100,000 or 5000 penalty units. A criminal penalty may also be applied.

 

This short article does not constitute legal advice and should not be relied as such. For more information, get in contact with us today to learn more about your legal duties in your company.

 

 

Tags :

Corporationslaw

Share :

Leave a Reply

Your email address will not be published.