Written by Josh Philo.
As a result of recent changes to the law, all directors of a company must now hold a unique director identification number. We recommend that you advise your clients of this requirement if you have not already done so.
If a person became a director on or before 31 October 2021, they have until 30 November 2022 to apply for their director ID. However, directors appointed after 31 October 2021 have only 28 days after being appointed to then make an application for a director identification.
From 5 April 2022, this process changes again. Anyone seeking to be appointed as a director of a company will need to have a director identification prior to being appointed.
Fines for failing to comply can range from $13,200 to $1,100,000.
The process of applying is relatively straightforward and can be done through the MyGovID app. Paper applications can also be made for directors living overseas.
Whilst this is a relatively simple administrative task, it is not one which should be overlooked or taken lightly, given the potential serious implications for non-compliance.