Posted on July 26, 2024
Kathy Nguyen
A director ID is a 15 digit identifier given to a director of a company once they have verified their identity with the Australian Business Registry Service (ABRS).
The purpose of a director ID is to assist relevant authorities to prevent the use of fraudulent director identities, keep track of directors’ relationships with companies and to eliminate unlawful activities.
You are required to obtain a directors ID if you are a director of a company, registered Australian body or registered foreign company under the Corporations Act 2001 (Cth). If you intend to become a director of a company, you must apply for a director ID before your appointment.
It is a criminal offence under the Corporations Act 2001 (Cth) if a director does not apply for director ID and penalties of up to $18,780 may apply. ASIC is the governing body that enforces director ID offences.
Recently two directors in Western Australia were convicted for failing to have a director ID and were both fined $5,000 in the Perth Magistrates’ Court.
It is important that you are aware of your obligations as a director, including obtaining a director ID at the earliest opportunity.
If you have any queries or concerns in relation to your obligations and duties as director of a company, please contact the friendly commercial team at Scanlan Carroll.
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