To eliminate increasing phoenix activity in Australia, the Commonwealth Government (the “Government”) passed The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019. It consolidated the various Commonwealth Government Corporate registries into Australian Business Registry Services (ABRS) and introduced a requirement for Directors and other Company officers as prescribed in the regulations to have a unique identification number called director identification number (“Director ID”) from 1 November 2021.

The Director ID will allow government regulators and market participants to better track directors and company officers and prevent the use of pseudonyms or fictitious identifies to conceal a person’s directorship in corporate entities.

Director IDs also prevent the appointment of a person as a director of a company without their knowledge or consent.

The requirement to have a Director ID is in addition to all other qualifications that a director is required to have pursuant to the Corporations Act 2001.

A Director ID is a permanent number which will not change or be deleted even if a person no longer acts as a director of any company. It is akin to an ABN, but for people

Who Needs a Director ID?

The requirement to have a Director ID applies to directors and alternate directors of the following entities:

  1. A company registered under the Corporations Act 2001;

 

  1. A foreign company registered under the Corporations Act 2001;

 

  1. A Registrable Australian body registered under the Corporations Act 2001; and

 

  1. An Aboriginal and Torres Strait Islander Corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act

Transition to Director ID System

Given the number of companies and directors in Australia, the Government has given a directors and alternative directors different periods of time to obtain a Director ID.

For an entity registered under the Corporations Act 2001:

DATE YOU ARE APPOINTED A DIRECTORDEADLINE TO OBTAIN A DIRECTOR ID
On or before 31 October 202130 November 2022
between 1 November and 4 April 202228 days from appointment as a director
5 April 2022 onwardsPrior to appointment as a director

 

For an entity registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006:

DATE YOU ARE APPOINTED A DIRECTORDEADLINE TO OBTAIN A DIRECTOR ID
On or before 31 October 202130 November 2022
1 November onwardsPrior to appointment as a director

Applying for a Director ID

A Director ID can be applied for using the Governments myGov portal, a paper form, or over the telephone.

To apply for a Director ID you will be required to provide proof of identity which will vary depending on the method you use to apply for a Director ID.

Further information on proving identification for a Director ID can be found at ABRS .

Documents in a language other than English are acceptable but must be translated by an accredited translator.

After I have My Director ID

Once you are issued with a Director ID you should provide it to the person at the Company or entity of which you are a director who is responsible for informing ASIC or Office of the Registrar of Indigenous Corporations of any changes in the details of the company or entity.

If there are changes in your personal information you are required to update your information either through your myGov portal or by directly contacting Australian Business Registry Services.

Queries

If you have any queries, feel free to contact your usual Eakin MCCaffery Cox contact or email to info@eakin.com.au or info@gregdross.com.au .

The above was prepared by Gregory Ross and Caspar Hawke

for and is intended to provide a broad general overview of issues only.

It is not intended, and or must not be relied upon, as definitive legal advice.