I have written about the introduction of the Director Identification Number (“DIN”) a few times over the last few years as the system has taken shape and developed.
We now know the timelines associated with the rollout of the DIN regime, the details of which are provided below.
Background
- The DIN system will serve eradicate unreliable data from the ASIC register that arises from the use of shortened names or aliases
- The regime is also designed to enhance the identification directors who engage in illegal phoenixing activity and deter directors from engaging in such behaviours in the first place
Who needs to apply for and hold a DIN?
Commencing in November 2021, directors of the following entities will need to hold a DIN:
- Any company (which also includes a company acting only in a capacity as trustee)
- Aboriginal & Torres Strait Island Corporation (director under the CATSI Act)
- Registered Australian body or Foreign Company (ARBN)
- Charity or not-for-profit organisation that is a company
- Company secretaries do not need a DIN
What is the timeline to apply?
- Existing directors will have until 30 November 2022 to apply for a DIN
- New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment
- New directors appointed to be from 5 April 2022 must apply for a DIN before their appointment
How to apply for a DIN?
Visit the Australian Business Registry Services website to learn more about DINs and how to apply.
Summary
It is important you, as advisors, know how the process works so that your clients are properly informed.
From our perspective, these changes will certainly make our lives as external administrators a lot easier when it comes to tracing relationships between directors and the entities that they are associated with.
About the author
Greg Quin is a Partner and Registered Liquidator at HLB Mann Judd Insolvency WA and has been with the team for 12 years. Greg oversees the daily operations of the many insolvency appointments managed by the HLB Insolvency team and looks after the operations of the practice.
If you have any queries about insolvency matters, please feel free to contact Greg on 08 9215 7900, 0402 943 091 or via email to gquin@hlbinsol.com.au.
