Director identification number: Who must apply?

Definition

A director identification number (DIN) is a unique identifier assigned to individuals who hold or wish to hold directorship positions within companies registered under the Corporations Act 2001.

What is a director identification number?

The DIN framework plays an important role in supporting Australia’s corporate governance framework, safeguarding investor interests, and promoting trust in the management and oversight of companies operating under the Corporations Act.

A DIN is mandatory for all directors, serving as a permanent and unique identifier throughout their directorship career, regardless of changes in company affiliations. This facilitates transparency in corporate dealings, helping regulatory authorities and stakeholders verify the identity and history of directors involved in different companies.

To get a DIN, individuals must apply through the Australian Securities and Investments Commission (ASIC), providing personal details, proof of identity, and any necessary disclosures about past directorships. ASIC verifies this information before issuing the DIN, making sure that only eligible and fit individuals hold director positions.

Once assigned, directors use their DIN to fulfil various regulatory obligations, including submitting company reports, complying with legal duties, and maintaining accurate records with ASIC.

The DIN system wants to prevent fraudulent activities, increase corporate integrity, and promote good governance practices by holding directors accountable for their actions and roles within the corporate sector.

Example of how a director identification number is used

John, a seasoned entrepreneur, decides to expand his business ventures by becoming a director in two newly established companies in Australia. He applies for a director identification number (DIN) through the ASIC for each company. After verifying his identity and reviewing his past directorships, ASIC issues John a unique DIN for each directorship.

With his DINs, John can now fulfil his legal obligations as a director, such as signing off on financial reports, ensuring compliance with corporate laws, and representing the companies in business transactions.

If John decides to step down from one of the directorships in the future and takes on a new role elsewhere, he would continue to use the DIN issued to him.