All directors of companies registered under the Corporations Act 2001 (the Act) or the Aboriginal and Torres Strait Islander Act 2006 (CATSI Act) with appointments on or before 31 October 2021 have until 30 November 2022 to apply for a Director Identification Number (DIN).
Directors of other entities, such as, for example, incorporated associations that are registered Australian bodies and who trade outside the state or territory in which they were incorporated are also subject to the requirement to obtain a DIN.
Here are some eleventh hour questions and answers to steer you and your company to compliance:
For directors or those acting as an alternate director of a company registered under the Act or CATSI, you need a DIN.
2. What if I don’t get a DIN by 30 November 2022?
If you can’t provide a DIN to the authorities, you may be fined. For criminal offences, penalties include fines of up to $13,320 and one year imprisonment and for a civil offence, fines are up to $1,100,000.
3. If I don’t get a DIN by 30 November 2022, will my appointment as director be invalidated?
No, but it is your personal duty as director to apply for a DIN.
4. Do I need to disclose my DIN to my company?
No, but if your company asks you to disclose your DIN and you no not comply, this may provide grounds for the company to terminate your directorship.
1. What happens if we appoint a person as director without a DIN?
If a company appoints a director without a DIN, it may be considered to be ‘involved in a contravention’ of the Act and receive a civil penalty.
2. What happens if we appoint a person as director without a DIN?
Companies should require anyone being considered as a director to either disclose their DIN or confirm that they have a DIN in order to avoid liability.
3. Who and what laws are governing the requirements for DINs?
The Australian Business Registry Services (ABRS) as managed by ATO, ASIC, the Act and CATSI.