As part of a package of reforms to deter and penalise illegal phoenix activity, the Government announced in September 2017 that it would introduce a Director Identification Number (DIN).
Currently, the law requires directors to lodge certain details with ASIC. However, the law does not require ASIC to verify a director’s identity.
The DIN would require all directors to confirm their identity. The DIN will be a unique identifier for each person who consents to act as a company director.
The person will keep that unique identifier for life, even if their directorship with a particular company changes. The DIN will provide traceability of a director’s relationships across companies and interface with other government agencies and databases to allow regulators and market participants to map the relationships between individuals and entities and individuals and other people.
The adoption of DINs will enable better tracking of directors of failed companies and prevent the use of fictitious identities. This will ensure that directors of companies that enter external administration can be clearly identified and will assist regulators and external administrators investigate a director’s involvements in what may be repeated unlawful activity including illegal phoenix activity.
Treasury’s consultation includes asking what privacy and security concerns are there around the public availability of the DIN?