Do directors need an “identity number”?

The Productivity Commission has proposed that company directors be allocated a “director identity number” (DIN) , in its draft report on business set-up, transfer and closure. A director would have only one DIN regardless of how many directorships he or she holds.

To assist the Australian Institute of Company Directors’ consideration of this issue, please complete the director identity number survey (there are only two questions) by 12pm Monday 29 June. We will use the results in our response to the Productivity Commission on this proposal.

The purpose of this proposal is to better enforce laws relating to phoenix activity by providing a means to identify directors other than an unverified name and address, and seeking to prevent the use of fictitious identities.

 Current directors would be required to apply to the Australian Securities and Investments Commission for a DIN and then provide the DIN at the annual review date for the company as a change to the company details. Otherwise, a DIN would be allocated to an individual at the time of his or her first directorship. In order to obtain a DIN, an individual would be required to provide 100 points of identification proof and also verify that he or she has read materials on director’s legal responsibilities that would be provided as part of the director registration process.

More information about the proposal can be found in Chapter 15 of the Productivity Commission’s draft report at pages 382 to 384.