Since November 2021, it has been a legal requirement for all company directors to have a director identification number (director ID). This identifier was introduced to help prevent the use of false or fraudulent director identities and it’s more important than ever to ensure you have yours.
The Australian Securities and Investments Commission (ASIC) has brought its first action against a director for failing to comply with section 1272C(1) of the Corporations Act 2001 (Cth) (Act) which mandates having a director ID. The maximum penalty for an offence against section 1272C(1) of the Act is 60 penalty units equating to a maximum penalty of $13,320 for the defendant in this matter. This case highlights the serious consequences of non-compliance and serves as a warning to all directors about the importance of adhering to this legal requirement.
It is crucial for directors to be aware of the specific timeframes for applying for a director ID:
- Directors appointed before 1 November 2021 had until 30 November 2022 to apply.
- New directors appointed for the first time between 1 November 2021 and 4 April 2022 had 28 days from their appointment to apply.
- From 5 April 2022, any individual intending to become a new director must apply before being appointed.
These deadlines are critical, and directors should prioritise applying for their director ID promptly to avoid any potential issues and ensure they are in compliance with the law.
If you wish to discuss any of the above or require further information please contact our Commercial Team on (02) 4927 2900.
