What is a Director Identification Number?
A DIN is a unique identification number that existing directors and future directors of a company or a registered body will be required to obtain. To obtain a DIN, directors will be required to confirm their identity.
Once a DIN is issued, it will be kept by the individual permanently. Only one DIN will be made available to each director, and directors will require their DIN to interact with any government agency.
What is the purpose of the Director Identification Number Regime?
The key purpose of the DIN regime is traceability. DINs will provide a mechanism to trace a director’s history and a director’s relationships across different companies. Therefore, the regime will help regulators investigate a director’s involvement in unlawful activity, particularly illegal phoenix activities, which is where a company’s liabilities are deliberately avoided by shutting down an indebted company and transferring its assets to a new company.
In addition to reducing illegal phoenix activities, the regime also aims to prevent the appointment of fictitious directors and improve data integrity.
The following conduct will attract civil and criminal penalties:
- Failing to obtain a DIN within the prescribed period;
- Deliberately providing false identity information;
- Intentionally applying for multiple DINs; and,
- Intentionally providing a false DIN to a government body or body corporate