Treasury Laws Amendment (Registries Modernization and Other Measures) Bill 2018 (Cth) (Bill); has introduced the provision of obtaining Director Identification Numbers (“DIN”) by the Directors. Obtaining a DIN is already mandatory in countries like India.
Directors would need to apply for a DIN prior to their appointment. The bill also proposes that any failure of a director to notify the Australian Securities and Investments Commission (“ASIC”) of resignation within 28 days will result in the effective date of resignation to be from the date of notification. This will make the director liable for the period between actual resignation and the date of notification.
This is still a Bill and will be effective if passed by the Parliament.
Any failure to comply with the DIN requirements would attract both criminal and civil penalties. The company will have to review and obtain DIN for its directors once this becomes a law.
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