ASIC Takes Action Against Director for Failure to Obtain Director Identification Number

In a recent development, ASIC has initiated its first prosecution action against a director for failing to adhere to the obligation of obtaining a director identification number (director ID). This significant step underscores the importance of regulatory compliance within the corporate landscape.

On 19 March 2024, the Downing Centre Local Court saw a director formally charged with contravening section 1272C(1) of the Corporations Act 2001 by neglecting to secure a director ID. The Court granted an interim non-publication order (NPO) on the defendant's identification, with further proceedings scheduled for 16 April 2024.

Subsequently, on 22 March 2024, the interim NPO was extended until 16 April 2024, highlighting the ongoing legal proceedings.

Background

It's crucial for all directors to verify their identity with the Australian Business Registry Services before obtaining a director ID. Compliance timelines vary based on appointment dates:

• Directors appointed before 1 November 2021 had until 30 November 2022 to apply.
• New directors appointed 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 their appointment.

Non-compliance with section 1272C(1) of the Act carries a maximum penalty of 60 penalty units, equating to a maximum fine of $13,320.

The interim NPO was further extended to 30 April 2024, aligning with the next court appearance date. This case serves as a reminder of the regulatory requirements placed on directors and the consequences of non-compliance.

How We Can Help

If you need any assistance in applying for director ID, please call us on 1300 513 332 or contact us here to arrange an appointment to complete this application online. 

 

Date published 24 Apr 2024 | Last updated 24 Apr 2024