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  • Writer's pictureJayne Kilsby

Director ID – Have you applied for your Director ID?

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Did you know it is now a requirement to have a Director ID?

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.

Did you know it is now a requirement to have a Director ID?

When you need to apply for a director ID, depends on when you became a director.

If you: – become a director from 1 November 2021 to 4 April 2022, you must apply for a director ID within 28 days of your appointment – become a director on or after 5 April 2022 you will need to apply prior to your appointment – were a director on or before 31 October 2021, you have until 30 November 2022 to apply.

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