On 16 April 2021, the AICD lodged a submission with Treasury on the Transitional Application Periods as part of the Modernising Business Registers (MBR) Program consultation.
The AICD supports the objectives of the MBR program which intends to create a new flexible and technology-neutral modern business registry regime, and the introduction of a director identification number (Director ID) to assist the government’s aim to combat illegal phoenix activity.
While we support the proposed transitional periods for existing directors under the Corporations Act 2001 (Cth) (Corporation Act) and Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act), the AICD continues to have concerns about the timeframe, after the transitional period, by which all new directors must have a Director ID prior to their appointment as a director. In our view, the 28 day period for all new directors to apply for a Director ID should become a permanent feature of the Director ID regime.
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