About Directors ID
Posted by Admin
A director identification number (director ID) is a unique identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.
How director ID works
A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with us.
A director ID:
• starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166
• ends with an 11-digit number and one ‘check’ digit for error detection.
Directors must to apply for their own director ID and It’s free to apply.
Directors will only ever have one director ID. They'll keep it forever even if they:
• change companies
• stop being a director
• change their name
• move interstate or overseas.
Why you need a director ID
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help to:
• prevent the use of false or fraudulent director identities
• make it easier for external administrators and regulators to trace directors’ relationships with companies over time
• identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:
• employees miss out on wages, superannuation and entitlements
• suppliers or sub-contractors are left unpaid
• other businesses are put at a competitive disadvantage
• the community misses out on revenue that could have contributed to community services.
Who needs to apply and when
You need a director ID if you’re an eligible officer of:
• a company, registered Australian body, or registered foreign company under the Corporations Act 2001 (Corporations Act)
• an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
An eligible officer is a person who is appointed as either:
• a director
• an alternate director who is acting in that capacity.
You will only ever need one director ID. You don’t have to apply for another one if you become a director of other companies or corporations.
You must apply for your own director ID to verify your identity. No one can apply on your behalf.
People who don’t need to apply
You don't need a director ID if you're either:
• a company secretary but not a director
• acting as an external administrator of a company
• running a business as a sole trader or partnership
• referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act
• a director of a registered charity with an organisation type that is not registered with ASIC or ORIC to operate throughout Australia
• an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body.