Reminder for new directors – Director ID requirements to come into effect on 5 April 2022
ASIC has recently issued a reminder that from 5 April 2022, new directors appointed under the Corporations Act 2001 for the first time must now obtain their director identification number (director ID) prior to their appointment.
Under current arrangements, new directors appointed for the first time between 1 November 2021 and 4 April 2022 have 28 days to apply for their director ID. Directors appointed on or before 31 October 2021 are not required to submit their application until 30 November 2022.
As part of the director ID initiative introduced in November 2021, company directors are required to verify their identity. ASIC advises that the initiative was implemented largely to assist in preventing the use of false or fraudulent director identities.
Directors who are unable to apply for their director ID within the specified timeframes can make an application for an extension of time. For information about applying for a director ID or an extension, please visit the ABRS website: https://www.abrs.gov.au/director-identification-number.
ASIC cautions that directors who fail to apply for their director ID within the specified period, and who have not been granted an extension of time to apply, will be referred to the body for enforcement action. ASIC is responsible for enforcing director ID related offences established in the Corporations Act 2001. If a director does not apply by the specified date, they may be considered to have committed a criminal offence.
Please see our previous article here for an overview of the director ID regime.
For further information please contact an author, or any member of our Corporate & Commercial team.
This information and the contents of this publication, current as at the date of publication, is general in nature to offer assistance to Cornwalls’ clients, prospective clients and stakeholders, and is for reference purposes only. It does not constitute legal or financial advice. If you are concerned about any topic covered, we recommend that you seek your own specific legal and financial advice before taking any action.