ASIC Commences its First Prosecution
ASIC has commenced its first prosecution action against a director for failing to comply with their obligation to have a director identification number (director ID). The director was formally charged with one count of contravening section 1272C(1) of the Corporations Act 2001. The defendant in this matter is facing a maximum penalty of $13,320.
This is a reminder to all current and intending directors, that they are required by law to verify their identity and obtained a director ID via the Australian Business Registry Services (ABRS). Failure to do so is a criminal offence and may attract significant criminal and/or civil penalties.
All new directors must apply before being appointed. ASIC Registered Agents are encouraged to remind directors of this obligation and to not proceed with an appointment without proof a director has applied.
This also serves as a warning to any director who has not yet obtained a director ID. The ABRS/ASIC are monitoring compliance and are working with directors to encourage them to apply where they haven’t done so. However, ASIC has shown that it will not hesitate to prosecute if repeated directions to apply are ignored!