A Director Identification Number (Director ID) is a unique 15-digit identifier required by individuals who wish to serve or are serving as directors of Australian companies. This system was implemented to enhance the integrity and transparency of the corporate governance framework in Australia.
The Director ID helps to prevent the use of false or fraudulent identities, ensuring that directors can be accurately identified across different companies. It is a permanent identifier, meaning that once obtained, it remains with the director for life, even if they cease to be a director, change companies, or move interstate or overseas. The process of obtaining a Director ID involves verifying one's identity with the Australian Business Registry Services (ABRS), and it can be done online through the myGovID platform. Directors are required to apply for their Director ID themselves, and it is a legal requirement to have one before being appointed as a director.
The Director ID starts with 036, which is the country code for Australia under the International Standard ISO 3166, followed by an 11-digit number and a final 'check' digit for error detection. This system is part of a broader effort to combat illegal phoenix activity, where companies deliberately avoid paying liabilities by shutting down and transferring assets to another company. For more detailed information on the application process and requirements, individuals can visit the official ABRS website.