We are one step closer to a National ID system with the introduction of a national identifier for company directors.
A person’s portfolio of digital assets now includes not only accounts and access control details, digital files and records BUT also the electronic identifiers through which a person transacts business in the economy.
The Director ID will follow a company director in all companies in which they are engaged and can include a biometric identifier, in the same way that passports work now.
From 1 November 2021 all private company directors need to register and obtain a Director ID. See the Australian Business Registry Services information here.
When do I need a Director ID?
For those directors appointed on or before 31 October 2021, your ID has to be established by 30 November 2022.
For those Directors appointed between 1 November 2021 and 4 April 2021, your ID must be established within 28 days of appointment.
From 5 April 2022, the ID MUST be established before appointment.
This regime includes directors of all companies that hold a Trustee function and role. This is one task that can’t be delegated. People need to apply in person!
What about passive directors?
Directors who are not actively involved in the company will need their role to be reviewed and formalised with this new identifier. It may be prudent for passive directors to take this opportunity to resign, and the governance requirements of the company revised.
Company Secretaries or those with this function in a company need to update the operational documents of the company to use this ID in its businesses as appropriate.
Family Trustee Companies will need careful attention.
Company governance and operations need to be updated to use the new identifiers.
Do these changes impact your estate governance, administration and succession? If this needs evaluation or further action, contact us.