Important Information For Company Directors

Talking Points If you are a company director appointed prior to 1 November 2021, you must obtain your director ID by 30 November 2022. New directors should apply before they are appointed. You must apply for a director ID yourself. No one can apply for you. Penalties may be applicable if you don’t apply for a director ID. This measure is designed to safeguard all company stakeholders from fraudulent and unlawful director activities. As of 5 April 2022, all directors (existing or new) must ensure they have a director ID before they are appointed to a company.

Overview

As a company director, under new legislation, you’re now required to obtain a director identification number (director ID).

Late last year we wrote an article on our website to prepare clients for these changes, and with April 5 around the corner, we thought it would be prudent to remind our audience.

A director ID is a unique identifier that you keep forever. It’s free to apply and you only need to apply once.

If you are a company director appointed prior to 1 November 2021, you must obtain your director ID by 30 November 2022. New directors should apply before they are appointed.

What you need to do

The fastest way to get a director ID is to apply online using the myGovID app. If you can’t get a myGovID, the best way to apply for a director ID will depend on your situation.

Find out how you can apply for a director ID here: abrs.gov.au/DirectorID

You must apply for a director ID yourself. No one can apply for you. The reason for this is you need to prove your identity when you apply.

Penalties may be applicable if you don’t apply for a director ID. The regulatory authority, Australian Business Registry Services (“ABRS”) will consider the circumstances of those that don’t apply on time when deciding what action to take.

As of 5 April 2022, all directors (existing or new) must ensure they have a director ID before they are appointed to a company.

What happens next

Once you have your director ID, keep it safe until you need to use it. It can be shared with your accountant, company secretary, ASIC registered agent or tax professional.

You don’t need to provide your director ID to ASIC unless otherwise directed. When the ASIC companies register is transitioned to ABRS in the future, your director ID will need to be linked to the companies that you are a director of. We’ll keep you up to date with any changes that may affect you.

How director ID will help honest businesses

Director ID is the first service delivered by the ABRS and will help to:

• prevent the use of false and fraudulent director identities
• make it easier for external administrators and regulators to trace directors’ relationships with companies over time
• identify and eliminate director involvement in unlawful activity

For more information about ABRS and director ID, visit abrs.gov.au/about-us.

You can also refer to our blog post on this topic should you wish to understand the director ID requirements in further detail.

Alternatively, please contact us if you have any further questions regarding your officeholding, the director ID requirements or other corporate governance issues.

Kind regards
The CharterNet team