Time's Up for Non-Compliant Directors as ASIC takes Enforcement Action
[Update] Convictions Announced
On , ASIC announced the conviction of two West Australian company directors for failure to hold a DirectorID. Both directors were convicted by the Magistrates Court of Western Australia on and fined $5,000.
The Magistrate stated the director ID service had been enacted for a proper public purpose and considerable efforts had been made by government agencies to bring the accused’s attention to the service and comply.
Previously...
On , ASIC announced the first prosecution of a company director for alleged failure to hold a mandatory Director Identification Number (DIN).
The proceedings were commenced against the unnamed director (whose identity is subject to a non-publication order) on .
If convicted, the director faces a fine of up to AU$13,320.00 (60 penalty units).
Requirement to Hold a Director Identification Number (DIN)
All directors of Australian companies must now hold a Director Identification Number (DIN). Failure to do so is an offence under section 1272C(1) of the Corporations Act 2001 (Cth).
The requirement was progressively introduced from as a means of verifying the identity and eligibility of all Australian company directors, to trace directors across different corporations, and to assist with anti-phoenixing and anti-fraud measures.
ASIC and the Australian Business Registry Service (ABRS) previously annouced that they were commencing active pursuit of enforcement actions against non-compliant directors, who would potentially be summoned to provide an explanation for their non-compliance.
Ultimately, non-compliant directors may be referred to ASIC for prosecution under the Act.
Further Information
- ASIC brings first action against a director for failing to have a director identification number, ASIC Media Release (24-058MR, )
- ASIC In Focus - July 2024 (Vol 33 Issue 5, )
Cover Image Credit: Jan Huber via Unsplash
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