As you may already know, ASIC has recently ramped up its enforcement efforts regarding Director ID compliance. 

On 19 March 2024, ASIC initiated its first prosecution against a director for failing to comply with section 127C(1) of the Corporations Act by neglecting to obtain a Director ID.

This serves as a stark reminder of the importance of ensuring timely compliance with this regulation to avoid potential penalties and legal ramifications.

Here's a quick rundown of what you need to know:

• A Director ID is a unique identifier that directors must obtain through the Australian Business Registry Services.
• It serves as a lifelong identifier and helps prevent the misuse of false or fraudulent director identities.
• Each director only needs to apply for one Director ID, regardless of how many companies they serve as a director for.
• All directors of Australian or foreign companies, registered Australian bodies, or Aboriginal and Torres Strait Islander corporations are required to obtain a Director ID.

Furthermore, there are strict deadlines for obtaining Director IDs based on the date of appointment:

• Directors appointed on or before 31 October 2021 must register before 30 November 2022.
• Directors appointed between 1 November 2021 and 4 April 2022 must register within 28 days of their appointment.
• Directors appointed on or after 5 April 2022 must register prior to their appointment.

Failure to comply with these requirements may result in significant penalties, including a maximum civil penalty of $1,375,000 or a maximum criminal penalty of $16,500.

ASIC’s enforcement role covers four new director ID offences under the Corporations Act 2001: