Show me your ID

Section 1272C of the Corporations Act 2001 (Cth) was introduced in 2021 and requires all company directors to apply for a company director identification number.  This is a number that stays with an individual and is used for all director appointments in an individual’s lifetime.

The introduction of the director ID is aimed at:

  • preventing the use of false or fraudulent director identities

  • making it easier for external administrators and regulators to trace directors’ relationships with companies over time

  • identifying and eliminating director involvement in unlawful activity, such as illegal phoenix activity (debt avoidance).

Company directors must apply (or have applied) for their director ID in accordance with the following requirements:

  • directors appointed before 1 November 2021 have 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, intending new directors must apply before being appointed.

Failing to comply with this new requirement is a strict liability offence which could result in civil (up to $1, 100,000) and criminal (up to $13,200) penalties for individuals.  Strict liability means that ASIC do not need to prove intent to penalise you.

For more information on obtaining a director ID go to Director identification number | Australian Business Registry Services (ABRS) or contact us for assistance.

Cristy Houghton