ASIC has started bringing court actions against Directors in Australia for failing to have a Director Identification Number (DIN).

In March 2024, ASIC brought an action against a NSW Director in the Downing Centre Local Court in Sydney for failing to have a DIN. Additionally, in May 2024, the Perth Magistrates Court convicted two Directors in WA for failing to hold DINs and issued them a fine of $5,000 each plus costs.

The actions brought by ASIC are criminal. Therefore, any penalty imposed by the court in such a case will result in the Director having a criminal record.

What is the DIN?

The DIN is a unique 15-digit identifier a Director must apply for through the Australian Business Registry Services (ABRS).

The DIN initiative, established under the Corporations Act 2001 (Cth) (Corporations Act) on 1 November 2021, aims to help identify each Director, prevent the use of false or fraudulent Director identities, help trace Directors’ relationships with companies over time and identify Director involvement in unlawful activities.

Each Director permanently holds one DIN, even if they are Directors of more than one company.

Who needs a DIN?

Unless exempt, all Directors and alternate Directors acting in that capacity of an:

• Australian company
• registered foreign company
• registered Australian body
• Aboriginal and Torres Strait Islander Corporation

are required to have a DIN.  

Applications must be submitted by a specific date, depending on the date the Director was appointed, as set out below.

Directors and alternative Directors acting in that capacity under the Corporations Act who were or are appointed:

• on or before 31 October 2021, must apply by 30 November 2022
• between 1 November 2021 and 4 April 2022, must apply within 28 days of appointment
• from 5 April 2022, must apply before being appointed.

Directors under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (Corporations ATSI Act) who were or are appointed:

• on or before 31 October 2022, must apply by 30 November 2023
• from 1 November 2022, must apply before being appointed.

Exemptions

Directors that are exempt from obtaining a DIN include anyone who was a Director on 31 October 2021 but has ceased holding any role as a Director or alternate Director acting in that capacity on or after 1 December 2022 (for Directors under the Corporations Act) and on or after 1 December 2023 (for Directors under the Corporations ATSI Act).

Extension of time

If a Director needs more time to apply for a DIN, they can apply for an extension of time to apply for a DIN to the ABRS.

Penalties

Under the Corporations Act, a Director who fails to have a DIN may be subject to the following penalties:

• up to $18,780 under criminal liability or
• up to $1,565,000 under civil liability, enabling ASIC to pursue harsher penalties.

Under the Corporations ATSI Act, a Director who fails to have a DIN may be subject to the following penalties:

• up to $7,825 under criminal liability or
• up to $200,000 under civil liability.

As a Director, you must apply for a DIN in the relevant timeframe to avoid exposure to criminal or civil sanctions.

If you need help applying for a Director Identification Number, contact our Business, Corporate & Commercial Team.