The importance of Director Identification Numbers in Australia
Recently, two directors from Western Australia have been fined $5,000 each by the Perth Magistrates Court for failing to comply with director identification requirements.
These two directors were convicted for contravening section 1272C(2) of the Corporations Act 2001.
The Magistrate highlighted the importance of the Director ID scheme, emphasising its public purpose and the efforts made by government agencies to ensure compliance. Each director was fined $5,000, along with costs totalling $171.71.
Under the law, all directors must verify their identity with the Australian Business Registry Services (ABRS) to obtain a Director ID. All directors must also apply before being appointed.
The maximum penalty for violating section 1272C(1) of the Act is 60 penalty units, equivalent to a fine of $18,780.
For international businesses expanding into Australia, this is an important registration which must not be overlooked.
ABN Australia offers assistance with Director ID applications and ensures compliance with Australian corporate regulations.
Contact us today for expert guidance.
Published: 24th May 2024