Legislation recently passed that will see the introduction of Company Director Identification Numbers. Similar to a tax file number, these unique identifiers will be a permanent number assigned to new and existing directors. The numbers are been issued to more easily monitor people’s involvement in multiple companies and in particular where phoenix activities may have occurred. Phoenix activities are where a company is liquidated with unpaid liabilities, then a similar new company is established and continues the same business.
These numbers will be issued to all directors, including those persons who are directors of the trustee company of their self managed superfund or a family trust. We believe there will be a public searchable database in connection with this. We are unsure at the extent of the information that will be made publicly available.
We expect the numbers will be issued to first time director appointments starting in February 2021 and existing directors will be issued numbers during the 2021 year. We will keep you posted with regard to any updates connected to the rollout of this initiative.
If you have any queries or concern please contact our office.
This article appeared in our September 2020 newsletter. The author is Peter Gill.