Director identification number legislation re-introduced

When the Federal Election was called in 2019, the Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 had not yet passed into legislation and subsequently lapsed on 11 April 2019.

This bill was about introducing a director identification number scheme, with the intended consequence of providing regulators better understanding of how specific individuals and entities are connected, plus the capacity to identify those that show higher risk of undertaking phoenix activities. In December 2019, the scheme was reintroduced to Parliament. This new bill has since passed the House of Representatives and is currently before the Senate.

The new bill contains two key differences to the original scheme:

    1. 1: Timing of director identification number (DIN) applications
      Instead of having up to 28 days after appointment to apply for a DIN, directors would be required to apply for a DIN before appointment.

      2: Effective resignation date
      Directors would be required to notify the Australian Securities and Investments Commission (ASIC) within 28 days of resigning. Where this requirement is not met, then the resignation would be seen to only take effect from the actual date of notification. This could have signification implications for director liability.

It is indicated that the scheme will commence within two years of the legislation being passed and receiving Royal Assent.

For an overview on what you would need to do if the new legislation was passed, read our previous article outlining the scheme here.

Thanks for reading.

By Genna Kidd

The information contained on this website has been provided as general advice only.  The contents have been prepared without taking account of your personal objectives, financial situation or needs.  You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.

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