What is a Director ID
A director identification number (director ID) is a unique identifier you need to apply for once and will keep forever. It will help prevent the use of false or fraudulent director identities.
Directors will only ever have one director ID. They will keep it forever even if they:
-change companies
-stop being a director
-change their name
-move interstate or overseas.
If you became a Director
on or before 31 Oct 2021
You will be required to apply for a director ID before 30 November 2022
Between 1 Nov 2021 and 4 Apr 2022
You have 28 days to apply for a Director ID
From 5 April 2022
A Director ID is required before a company is registered.
Take Action today to get your Director ID
You can apply for your Director ID through my GovID
Why you need a director ID
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help to:
-prevent the use of false or fraudulent director identities
-make it easier for external administrators and regulators to trace directors’ relationships with companies over time
-identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
-Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:
-employees miss out on wages, superannuation and entitlements
-suppliers or sub-contractors are left unpaid
-other businesses are put at a competitive disadvantage
-the community misses out on revenue that could have contributed to community services.
Need more help?
Contact us for a discussion today.
+61 2 8011 4699
