The Australian Government has passed the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2019 (Cth). This Act introduces a new requirement under the Corporations Act 2001 that all Australian directors obtain and hold a unique Director Identification Number (DIN) issued and administered by ASIC.
Current legislation does not require ASIC to verify the identity of directors and they could have multiple records within the ASIC system.
The intention of the Director Identification Number is to combat illegal phoenixing (phoenixing occurs when a company’s directors strip cash and assets from it, hide them, liquidate the company and then restart it, usually under a different name). The introduction of DIN’s is not only to reduce phoenixing it is also designed to promote good governance and improve integrity and security.
Key details are yet to be finalised, however the new regime is expected to be rolled out in the first half of 2021. Read More..