You may recall that last year I wrote an article about the concept of Director Identification Numbers (“DIN”). You can read the article here. Mistaken Identity – Not anymore
Serving as a quick update, I can advise that The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 has been passed in both houses of parliament and is awaiting Royal Assent.
It’s happening… Comprised within the bill is the requirement for all company directors to register and hold a distinctive DIN.
The regime will be overseen and maintained by ASIC and the key obligations on directors are as follows:
- Individuals must apply for a DIN prior to being appointed as a director;
- If directed by the Registrar, an individual must apply for a DIN within a prescribed period;
- Individuals are prohibited from applying for multiple DINs;
- A person must not misrepresent a DIN to a government body or registered body.
The regime is designed to enhance the identification directors who engage in illegal phoenixing activity and deter directors from engaging in such behaviours in the first place.
The DIN system will also eradicate unreliable data from the ASIC register that arises from the use of shortened names or aliases.
Once Royal Assent is obtained, there will no doubt be a measured roll out of the new requirements and the timelines and mechanics of registering for a DIN.
We will endeavour to provide you with this information when it becomes available so you can then inform your clients.
About the author
Greg Quin is a Director at HLB Mann Judd Insolvency WA and has been with the team for 10 years. Greg oversees the daily operations of the many insolvency appointments managed by the HLB Insolvency team and looks after the operations of the practice.
If you have any queries about insolvency matters, please feel free to contact Greg on 08 9215 7900, 0402 943 091 or via email to gquin@hlbinsol.com.au.
