The Director Identification Number (DIN) regime in Australia is a system established under the Corporations Act 2001, which requires directors of companies incorporated under the Act to apply for and hold a DIN.
This includes directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation.
Are you a director of one of the following?
| Are you a director of: | Status |
|---|---|
| Registered Company | |
| Registered Australian body | |
| Registered foreign company | |
| Aboriginal and Torres Strait Islander corporation |
The DIN is a unique eight-digit number assigned by the Australian Securities and Investments Commission (ASIC) that is used to identify directors of companies.
The DIN is linked to the personal details of the director, such as their name and date of birth, and is used to maintain accurate and up-to-date records of the director’s activities and responsibilities within the company.
The regime was introduced with the Corporations Amendment (Director Identification Numbers) Act 2018, which added a new Part 2D.6 to the Corporations Act 2001. The Director Identification Number Rules 2018 made it mandatory for all directors (existing and new) of companies incorporated under the Corporations Act 2001 to apply for a DIN, effective from 28th May 2018.
The regime aims to improve the accuracy and completeness of information held by ASIC about directors of companies and enhance regulatory compliance.
As illegal phoenixing (which occurs when a new company, for little or no value, continues the business of an existing company that has been liquidated or otherwise abandoned to avoid paying outstanding debts) has become a significant problem in Australia, the regime is also intended to reduce identity fraud and make sure directors do not engage in unlawful conduct.
A person cannot act as a director of a company without holding a DIN, and it’s now a criminal offence if an individual acts as a director while disqualified or while not holding a DIN.
Companies are required to check the validity of the DIN of their directors and ensure they hold a valid DIN before they take office.
If you are a director of an Australian company and you missed the DIN deadline of 30 November 2022, you should apply for a DIN immediately.
If you need any further advice on corporate governance and legislative requirements for companies and directors, please reach out to us at info@lawquarter.com.au