Natasha Thomas

 

December 2021 | Natasha Thomas

ASIC has introduced a new law requiring company directors to verify their identity through a director identification number (director ID). Directors will be issued with an ID by the Australian Business Registry Services (ABRS), which they retain for your whole lifetime even if you resign as a director, change names, move overseas.

People who deal with a company are entitled to know the identity and certain details of the company’s directors. The scheme aims to increase transparency and accountability and reduce use of fraudulent director identities, track directors’ relationship with companies, and identify director involvement in unlawful activities.

Who Needs to Apply – every director and alternate director of a company.

You do not need a director ID if you run a business as a sole trader or partnership, are a director of a registered charity with an organisation type that is not registered with ASIC, or are an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, provided the organization is a registered Australian body.  Only the individual seeking the director ID may apply. Individuals will be required to verify their identity.

Timelines

  • existing directors must apply by 30 November 2022;
  • directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of appointment; and
  • intending directors appointed from 5 April 2022 must apply before being appointed.

You can apply for an extension of time but be aware failure to apply within the allotted time is a criminal offence under the Corporations Act.

Applications –  you apply through the ABRS or using the myGovID app.

Steps to Take

  1. Ensure you can successfully verify your identity, as per the ABRS website.
  2. Set up the myGovID app on your device (note, this is a different app than myGov).
  3. Gather the relevant supporting documents

(a)       Your tax file number (TFN).

(b)       Residential address, as held by the ATO.

(c)       Two documents for identity verification.

  1. Complete your application through the myGovID app.

If you have any questions or concerns do not hesitate to contact the Harris Freidman office to help walk you through the process and further discuss your legal obligations.