On 19 March 2024 a director was formally charged in the NSW Local Court with one count of contravening section 1272C(1) of the Corporations Act by failing to have a director identification number. These are the first proceedings ASIC has commenced against a director for failing to comply with this requirement.

The charges are listed for a further mention on 16 April 2024.

The maximum criminal penalty for not complying with section 1272C is $18,780 (60 penalty units), or a maximum civil penalty of $1,565,000. The personal legal repercussions for contravening those provisions are significant. (The applicable maximum penalty depends on the value of the penalty unit at the time the offence was committed).

Directors who were appointed prior to 4 April 2022 are reminded that the cut off time to apply for their director identification number has passed, and that all directors appointed at any time on or after 5 April 2022 are required to have had a valid director identification number before their appointment.

Further information / assistance regarding the issues raised in this article is available from the author, Natalie Oliver, Special Counsel and James Davis, Lawyer or your usual contact at Moray & Agnew.