After much public discussion and consultation, Directors in Australia will now be required to be registered and assigned with a Director Identification Number (DIN). This requirement was created by the Treasury Law Amendment (Registries Modernisation and Other Measures) Act 2020 (CTH) and is expected to have a number of implications in relation to corporate governance. The DIN has been introduced with the aim to increase positive corporate conduct and reduce illegal phoenixing activity.
What are my obligations as a Director?
There are four key obligations for directors under this new scheme. Persons must:
- Apply for a DIN prior to being appointed a director or within a prescribed period of being directed to do so by the registrar
- Not knowingly apply for multiple DINs
- Not deliberately provide false identity information to the registrar; and
- Not misrepresent a DIN to a government body or registered body
For persons who are already directors, there will be a 12-month transitional period during which they must apply for a DIN within a period yet to be specified. This regime will automatically commence on 23 June 2022, or such earlier date as proclaimed by the Governor General. Companies and directors should stay up to date on this new regime as there criminal and civil penalties will apply to those found to be in breach of their obligations. B+a will continue to keep you updated in relation to developments of this regime.