Directors on Notice: WA directors convicted & fined for failing director ID requirements.

Recent regulatory actions in Western Australia have put the spotlight on Director ID requirements, with two WA directors facing convictions and significant fines for failing to comply with director identification requirements. This development has signalled the need for all directors to take prompt action.

The Director ID scheme is aimed to enhance transparency, accountability, and trust in corporate entities. It requires all directors to obtain a unique identifier, facilitating better tracking of directorship roles across various organizations. This transparency not only strengthens regulatory oversight and investor confidence, but also mitigates the risk of fraudulent activities.

As a crucial component of corporate governance, this recent case serves as a stark warning of the potential risks associated with neglecting Director ID obligations. Both directors were fined $5,000 each plus costs and convicted of contravening section 1272C(2) of the Corporations Act 2001. Regulatory authorities have heightened vigilance on the matter, with similar actions taken against directors in other jurisdictions.

ASIC has reminded directors of their legal obligation to verify their identity with the Australian Business Registry Services before receiving a Director ID.

The process is relatively straightforward but requires prompt action to ensure compliance with regulatory obligations. Here are the essential steps for obtaining a Director ID:

Verify your Identity: If you haven’t already you will need to setup your myGovID digital identity. You will need:

• A smart device with the MyGov app downloaded
  
• Your personal email address, full name, and DOB
  
• At least two of the following
  
  • Drivers Licence
    
  • Passport
    
  • Birth Certificate
    
  • Medicare Card
    
  • Visa
    
  • Citizenship certificate
    

Director ID Application: As of April 5, 2022, individuals intending to become directors must apply for a Director ID before their appointment. The application can be submitted through the ABRS website. You will need your myGovID, Tax File Number, current address held by the ATO and a piece of recent ATO correspondence.

Confirmation and Record Keeping: Upon successful application, directors will receive their Director ID. It is crucial to maintain records of this ID for future reference and compliance purposes. Additionally, regularly review and update directorship information to reflect any changes accurately.

If you require assistance or further clarification regarding Director ID applications, please don’t hesitate to contact our office on (07) 5655 0106. Proactive engagement with regulatory requirements is key to mitigating risks and fostering trust in your business operations.

Stay informed, stay compliant, and safeguard the future of your business.