By Ewurama Appiah a Law Clerk of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group
The Australian Securities and Investments Commission (ASIC) has sent company directors a clear message: if you don’t have a DIN, you will suffer discipline at the hands of the regulator.
ASIC has commenced its first prosecution against a company director for failing to have a director identification number (DIN). Section 1272C(1) of the Corporations Act 2001 (Cth) stipulates that
‘’an eligible officer must have a director identification number’’.
A DIN is a unique identifier which directors have been required to obtain since 1 November 2021. Directors were given until 30 November 2022 to obtain a DIN. The requirement was introduced in a bid to prevent false or fraudulent director identities being used in company registration. It will also assist in distinguishing registration of directors with the same or similar names, if and when the DIN is able to be used to search ASIC’s company registers.
However, it now appears that the honeymoon period for directors to obtain a DIN is well and truly over. According to a recent ASIC press release a director has appeared in the Downing Centre Local Court in Sydney on 19 March 2024, facing one count of contravening s. 127C (1) of the Corporations Act. If convicted the contravention of this provision comes with a maximum penalty of 60 units. Consequently, the director is currently facing a maximum penalty of $13, 320.
As of right now, the identity of the director remains unknown as an interim non-publication order has been granted by the Court until 16 April 2024 when the matter returns to court.
It is critical that all directors apply for and obtain a DIN urgently. If not, discipline awaits.
Read the press release here. For more information from ASIC click here.
To Apply for a DIN, see the Australian Business Registry Services website here.
If you would like to discuss this article please contact a Principal of the Matthews Folbigg Insolvency, Restructuring & Debt Recovery Group:
Jeffrey Brown on (02) 9806 7446 or jeffreyb@matthewsfolbigg.com.au
Stephen Mullette on (02) 9806 7459 or stephenm@matthewsfolbigg.com.au
