New Director ID laws proposed

It is being proposed that all existing and future directors of registered corporations be required to apply for a permanent identification number which will keep track of their various directorships.   

The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 proposes amendments to the Corporations Act 2001 making it compulsory for all newly appointed directors to apply for a unique Director Identification Number (DIN) within 28 days of becoming a director.  For existing directors, it is proposed that there will be transitional provisions giving a currently appointed director 15 months to apply for a DIN once the new requirement commences.  Those considering becoming a director within 12 months could also apply for a DIN.

With the current system, directors are only required to lodge their details with ASIC but there is no process in place to verify their identity. The new requirements will improve the traceability of a director’s relationship across all companies and allow the regulators to quickly investigate a director’s involvement in what may be repeated unlawful activity, in particular illegal phoenixing.

There will be civil and criminal penalties introduced for directors who do not have a DIN or that fail to apply for a DIN within the applicable timeframe.  A director also commits an offence if they knowingly apply for multiple DIN’s or misrepresent a DIN to a registered body or government agency.

Whilst the draft legislation was introduced to Parliament in February, experts recommend that companies prepare for its enactment.  We will keep you updated on its progress. 

Cove Legal provides legal advice on a wide range of commercial issues. We specialise in dispute work, but Principal Roger Blow’s 20+ years working in some of the largest commercial law firms allows us to address a wide range of client legal needs with fee structures that are tailored to the commercial issues being addressed.  Give us a no-obligation call to see if we can help.

 Roger Blow

P: +61 8 6381 0326 or e:

This publication is not intended to provide and does not provide legal advice. You should seek professional legal advice relating to your specific situation(s) before taking any action based upon its contents.

The census debacle - Cove Legal comments to the AFR on the legal fallout

The recent Australian census debacle is the hottest topic in the press this week, and Roger Blow of Cove Legal was asked by the Australian Financial Review to provide his expert views on the likely legal fallout from the website failure.  Read the full article via the link below.

It has certainly been a bad news week for both the ABS and IBM, but as Roger comments, when it comes to launching any legal action there are many more considerations to take into account than merely the issue of who was at fault.  For example, a party can be liable for damages but have their liability capped within the contract, and when things really go wrong such clauses can have a massive impact on how the parties react.