Have you applied for your Director Identification Number?

Director Identification Numbers are required to be held by directors of Australian companies, in a measure aimed at preventing fraudulent or false director identities and addressing illegal phoenixing by enabling regulators to trace the history of directors across multiple entities.

If you are a director of a:

  • a company, a registered Australian body, or a registered foreign company under the Corporations Act 2001 (Corporations Act); or
  • an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act),

you will need to apply for a DIN if you have not already done so. The deadline for applying for a DIN will depend on when you were first appointed as a director:

  • New directors appointed for the first time between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
  • From 5 April 2022, persons intending to be a company director must apply before being appointed.
  • Directors appointed on or before 31 October 2021 have until 30 November 2022 to apply.

The timeline for directors of CATSI organisations are different, and can be found here.

Alternate directors will also need to apply for a DIN.

You must apply for your own DIN, and cannot ask someone to apply on your behalf.

 

Who doesn’t need to apply?

DINs are only for company directors, as such the following people do not need to apply for a DIN:

  • company secretaries (unless they are also a director);
  • persons whose job title may include the word ‘director’ unless they are also directors of the company itself;
  • sole traders or partnerships;
  • a director of a registered charity with an organisation type that is not registered with ASIC or ORIC to operate throughout Australia;
  • an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body.

What if I don’t apply?

ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001, and it is a criminal offence if you do not apply on time.

There are four new director ID offences under the Corporations Act 2001:

Offence Legislative section Maximum Penalties for Individuals
Failure to have a director ID when required to do so s1272C $13,200 (criminal);

$1,100,000 (civil)

Failure to apply for a director ID when directed by the Registrar s1272D $13,200 (criminal);

$1,100,000 (civil)

Consciously applying for multiple director IDs s1272G $26,640, 1 year imprisonment or both (criminal);

$1,100,000 (civil)

Misrepresenting director ID (intentionally providing a wrong DIN) s1272H $26,640, 1 year imprisonment or both (criminal);

$1,100,000 (civil)

Whilst these are the maximum penalties that may be imposed, TLB LAW & CO strongly recommends that you apply for your DIN on time.

Company directors (or persons intending to be a director soon) can apply here for their DIN.

IMPORTANT NOTICE – The information contained in this article is not intended to be comprehensive. It is general in nature and is not intended to be used as a substitute for legal or other professional advice. You must seek specific professional advice tailored to your personal circumstances before taking any action based on this article.

Liability limited by a scheme approved under Professional Standards Legislation.

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