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New Director Identification Number (DIN)

The objective of a new Director Identification Number (“DIN”) for company directors is to assist with identifying company conduct that involves dummy directors and phoenix transactions.  Recently, the Treasury Laws Amendment Act 2020 (“the Act”) was passed with the aim of centralising Australian business registers. Under the Act, all current and future directors of an Australian corporation must hold a unique DIN.

The legislation states that every person holding the position of director, whether for an Australian corporation or any registered foreign corporation, must confirm their identity by obtaining a personal DIN. The DIN is then required to be used by each director for all respective director appointments.

The required date of application, supporting documents and process to obtain a DIN has not yet been specified within the Act. It is anticipated that these matters will be outlined in a separate legislative instrument.

The new DIN regime will benefit the Australian business community by:

  • increasing a director’s accountability and traceability;
  • limiting potential fraudulent activity and phoenixing;
  • preventing the use of fictitious identities;
  • assisting administrators and liquidators in increasing the accessibility of important information;
  • making a director’s historic relationship with a company more readily available;
  • ensuring that sensitive personal director information available on publicly accessible corporate registers is no longer available.

It is important that all company directors are aware of the Act and their obligations under the Act. Once further announcements and developments are made relating to the Act, there will be an impulse to act and apply for a unique DIN amongst directors. As soon as a DIN is obtained, this must be registered against all existing director appointments.

Transitional provisions will be available for the first year of operation, and penalties will be imposed for directors who do not apply for a DIN within the allowed time and who otherwise contravene the legislation. ASIC will act as corporate regulator until the Registrar to the Commonwealth Business Registry is appointed.

If you have any queries, or require assistance, please do not hesitate to contact our experienced Commercial Pillar at Burke & Associates Lawyers. We would welcome the opportunity to assist you.

Insight written by Meghan Warren

Contacts

Meghan Warren

Principal

Meghan Warren

Principal
LL.B GAICD B.Bus (FinPlan)
Meghan is one of the few lawyers in Australia admitted in the State (Victoria) and Federal jurisdictions of Australia, and as an Attorney at Law to the New York State Bar in the United States.

Kristy Muhlhan

Principal

Kristy Muhlhan

Principal
LL.B (Hons) GRAD DIP. L.P., GAICD.
Since 2014, she has been an owner and Principal of the firm and has mastered a broad range of essential commercial and business skills which go hand in hand with the work she does for...

Rosy Roberts

Principal

Rosy Roberts

Principal
LL.B (Hons) B.A GAICD
Rosy has extensive experience in Litigation & Alternative Dispute Resolution having represented clients in all Victorian State Courts and the High Court of Australia. She is also a VCAT appointed Administrator.

Anthony Burke

Consultant

Anthony Burke

Consultant
B.A LL.B DIP.FIN. MGT
Tony is an LIV accredited business law specialist and a VCAT appointed Administrator. In 2008 he was President of the Law Institute of Victoria and served for two years as a director of the Law...

Stewart Davis

Associate

Stewart Davis

Associate
LL.B (Hons) B.Com
As well as property law, Stewart has had exposure to VCAT administration matters and commercial law, particularly servicing developer clients.

George Hanger

Associate

George Hanger

Associate
LL.B BA
George was admitted to legal practice in May 2015 after completing a Bachelor of Arts at the University of Melbourne and a Bachelor of Laws at Monash University.

Antonela Graso

Paralegal

Antonela Graso

Paralegal
Whilst completing her professional business and law tertiary qualifications, Antonela provides efficient and effective legal support services to our valued teams and clients.

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