This article aims to analyze the recent decision of the Australian Securities & Investment Commission (ASIC) requiring all company directors in Australia to obtain a new director identification number (director ID).
What Is Director ID?
In short, it is a unique identifier given to a company director who has verified his/her identity with ASIC.
What is the main reason behind the director ID?
It is designed to prevent the use of false or fraudulent director identities/activities. Once the director’s ID gets recorded in a new database to be administered and operated by the Australian Taxation Office, it will further provide additional measures to trace and hold a director accountable for his/her directorship duties.
Who is required to apply and obtain the director ID?
The new requirement applies to all directors and acting directors who are registered in Australia under the Corporations Act 2001 (Cth), as well as registered foreign companies.