New legislation has come into effect making it compulsory from 1 November 2021 for Directors of companies listed with ASIC to register for a Director Identification Number (“Director ID”).
I can hear people saying ” More red tape? Why?” The requirement for Directors to register for a Director ID is to prevent use of false or fraudulent director identities, make it easier for regulators and external administrators to trace directors, identify and eliminate directors engaging in illegal ” phoenix activity”. i.e when a company is liquidated, wound up or abandoned and its directors and shareholders establish a new entity carrying out the same business in order to avoid the previous company’s earlier debts.
If you are a director and haven’t yet registered for a Director ID – don’t panic. There is a transitional period for you. You have until 30 November 2022. If you become a director between 1 November 2021 and 4 April 2022 then you must apply for a Director ID within 28 days of appointment. If you become a director after 5 April 2022 then you must first have a Director ID before you are appointed.
The fastest way for directors to register is online using the myGovID app. For more information go to the Australian Business Registry Services website.