On 26 October 2018, the AICD provided a submission to the government responding to the draft legislation which would, if enacted introduce a framework for director identification numbers (DINs) as part of the modernising business register reforms.
The AICD is broadly supportive of the proposed framework for the implementation of DINs. We consider this legislation an important step in improving the accountability of directors to assist with the detection of fraudulent phoenix activity. We noted a number of improvements to the legislative proposals regarding:
- The need for effective consultation regarding data integrity and addressing the privacy of personal information displayed on current registers.
- Although the AICD support the obligations and the relevant penalties in relation to directors and DINs, we did not support the reversal of evidential burden as proposed.
- Although supporting the ability for prospective directors to obtain a DIN, we considered the automatic 12-month period for cancellation of the DIN if a prospective director is not appointed to be too short.
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