ASIC Crackdown on Director ID Requirement

On 19 March 2024, ASIC commenced its first prosecution against a director for contravening section 127C(1) of the Corporations Act for failing to have a director identification number. The charges were listed for a further mention on 16 April 2024 at the Downing Centre Local Court.

A director ID is a unique identifier a director must apply for via the Australian Business Registry Services. Each director applies for an ID once and they will keep this identifier forever. This aids in preventing the use of false or fraudulent director identifies. Even if an individual is a director of several companies, they only require one director ID. All directors of an Australian or foreign company, registered Australian body or Aboriginal and Torres Strait Islander corporation need a director ID.

There are strict timeframes within which directors must apply for their director ID within:

• Appointed on or before 31 October 2021: Prior to 30 November 2022.
• Appointed between 1 November 2021 and 4 April 2022: Within 28 days of appointment.
• Appointed from 5 April 2022: Prior to appointment.

If a director fails to have a director ID, the director may be subject to a maximum civil penalty of $1,375,000 or a maximum criminal penalty of $16,500.

If you are currently a director of a company, or considering becoming a director of a company, contact McCabes to discuss how we can be of assistance to ensure that you are aware of your obligations at law.