Companies to be responsible for Director IDs (effective 1 July 2027)

Since its introduction in December 2022, individuals have been required to obtain and manage their own Director IDs.

From 1 July 2027, the Corporations Act will be amended to require companies to notify ASIC about Director IDs when:

1. Registering a new company;

2. Changing current directors personal details;

3. Ceasing current directors or appointing new directors; and

4. Completing the company annual review.

The individual director will still need to manage their own IDs.

A financial penalty of up to $43,680 applies if a company does not provide relevant Director IDs to ASIC for its directors by the earlier of:

a.      28 days after the company’s first annual review date occurring on or after 1 July 2027; and

b.      28 days after the company first notifies ASIC of a change to current director personal details on or after 1 July 2027.

For the compliance folks and company secretaries, you have some time before this change takes place.

Before 1 July 2027 you should:

1. Record Director IDs for all current directors and create a system to ensure Director IDs are provided when appointing new directors or when a director resigns; and

2. Confirm all current director personal details are listed on ASIC databases and that any incorrect information is updated.

For more information, please follow this link. ASIC has indicated that it will release more guidance ahead of 1 July 2027.

Or, get in touch if you have any questions.