Legislation implementing the new director identification number (DIN) scheme recently commenced, though the obligations involved are not due to start until late 2022.
We have previously described the DIN scheme and what will be required of directors.
The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth) (Act) has now been passed and will implement the DIN scheme. The Act amends the Corporations Act 2001 (Cth) (CA) and the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (CATSI), amongst others.
As a quick reminder, the obligations under the DIN scheme are :
- if they do not already have one, a person appointed as director, alternate director or any other officer of a body corporate registered under the CA or the CATSI must apply to the registrar for a DIN prior to being appointed a director;
- a director must apply for a DIN within the prescribed period (28 days or as the registrar determines) of being directed to do so by the registrar;
- a person must not apply for multiple DIN’s; and
- a person must not misrepresent a DIN to a government or registered body.
There are civil and criminal penalties for directors that do not meet these requirements, such as failing to apply for a DIN within the applicable timeframe, providing false identity information to the registrar, or intentionally applying for multiple DINs.
Despite the official commencement of the DIN scheme, directors don’t need to rush out for a DIN yet, as the DIN system is now in a testing period. According to draft legislative instruments circulated for consultation, directors will have until 30 November 2022 to obtain a DIN (with directors of indigenous corporations having a further 12 months).
If you have any queries regarding director identification numbers, please contact our Corporate Advisory and Governance team.