Australia – As part of an effort to streamline business registry services and improve processes for updating and maintaining information, the Australian government will begin implementing their Modernizing Business Registers (MBR) program.
The program, which will progressively roll out between 2021 and 2024, will consolidate the Australian Business Register (ABR) and 31 Australian Securities and Investments Commission (ASIC) registers in one place. In addition, the program introduces a director identification number initiative.
A unique identifier will be permanently assigned to a director, which they maintain even if they cease to be a director – the number will not be issued to another person.
This initiative will:
- Help verify the identity of directors
- Prevent the use of fictitious director identities
- Make it easier for government regulators to trace directors’ relationships with companies over time
- Improve identification and elimination of director involvement in unlawful activity
Who is required to obtain a director ID?
All eligible officers of a company or other legal entity registered under the Corporations Act 2001 and/or Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
An eligible officer is a person who is appointed as:
- a director
- an alternate director who is acting in that capacity
Once the registration system becomes available, existing directors will have until November 30th, 2022 to acquire an identification number (directors of corporations under CATSI will have until November 30, 2023). For the first year of the program, new directors will have 28 days to apply for an ID from the time of their appointment. After the first year, new directors will need to have an ID prior to being appointed a director.
To learn more about this requirement and how to comply, contact CT Corporation today.
