Director ID

ASIC has just announced that it has commenced its first prosecution action against a director for failing to have a director ID.

As a reminder, directors must apply for their director ID within the following timeframes:

• Directors appointed before 1 November 2021 had until 30 November 2022 to apply.
• New directors appointed for the first time between 1 November 2021 and 4 April 2022 had 28 days from their appointment to apply.
• From 5 April 2022, intending new directors must apply before being appointed.

The maximum penalty for the offence is 60 penalty units. The defendant in this matter is facing a maximum penalty of $13,320.

We note that in our experience, whilst the application for resident directors is fairly streamlined, we continue to have issues and delays where a manual application is required, particularly for non-resident directors who may not have a MyGov ID.

Accordingly, in light of the current announcement, it is imperative that care and forward planning is given to this strict legislative requirement.

ASIC Media Release

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-058mr-asic-brings-first-action-against-a-director-for-failing-to-have-a-director-identification-number/#:~:text=(24%2D058MR)-,ASIC%20brings%20first%20action%20against%20a%20director%20for,have%20a%20director%20identification%20number&text=ASIC%20has%20commenced%20the%20first,identification%20number%20(director%20ID).