The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 passed both Houses on 12 June 2020 and is awaiting Royal Assent.
UPDATE: Royal Assent given on 22 June 2020.
The Act amends the Corporations Act and the Corporations (Aboriginal and Torres Strait Islander) Act 2006 to introduce a director identification number (DIN) requirement.
The DIN will commence after a new Commonwealth business registry scheme (which is included in the Act) is implemented.
A person must apply for a DIN before they are appointed a director. After receiving an application, the registrar must provide the director with a DIN if the registrar is satisfied that the director’s identity has been established.
The DIN will be a unique identifier for each person who consents to be a director. The person will keep that unique identifier permanently, even if they cease to be a director.
It is not intended that a person’s DIN will ever be re-issued to someone else or that one person will ever be issued with more than one DIN (except in limited circumstances such as when a record is corrupted).
The DIN will provide traceability of a director’s relationships across companies, enabling better tracking of directors of failed companies and will prevent the use of fictitious identities. This will assist regulators and external administrators to investigate a director’s involvement in what may be repeated unlawful activity including illegal phoenix activity.
The requirements will commence on 12 June 2022 unless an earlier date is set.
A person who is a director at the time the new requirement starts to apply will be given a period of time to register.
During the first 12 months of the operation of the new requirement, a person who is appointed as a director must apply for a DIN within 28 days of being appointed as a director.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.