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Time's Up for Non-Compliant Directors as ASIC takes Enforcement Action

ASIC has 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

Cover Image Credit: Jan Huber via Unsplash

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