Directors Identification Numbers – two directors convicted – what does it mean for SMSF Directors?

ASIC has advised that two directors from Western Australia have been convicted and fined for failing to have a Director Identification Number (DIN) while acting as a director of a company. Both directors were convicted of breaching s1272C(1) of the Corporations Act and were each fined $5,000 and ordered to pay court costs (albeit a small amount).

All directors and alternate directors of a company (that is a corporation registered under the Corporation Act) must have a DIN.

The requirement to have a DIN extends to directors (or alternate directors) of companies acting as trustees of self managed superannuation funds (even if this is the only appointment of the director).

Individuals who are appointed or to be appointed as a director or alternate director must apply for a DIN before they are appointed as a director or alternate director of a company. An application for a DIN can be made up to 12 months in advance of the appointment.

As the offence of not having a DIN while acting as a director is an offence of strict liability, there is no “intention” element. But beware if you are a director (or alternate director) and do not have a DIN even for one day, the offence has been committed.

Once you have a DIN, it will stay with you for the rest of your life – whether or not you cease to be a director.

The lesson is that even if an individual’s only appointment is as a director of a company which acts as trustee of their own SMSF, they must have a DIN and they must have that DIN before the appointment is made.

And, finally, to answer John Singleton’s famous line – “where do you get it?” - well only the individual can apply for their own DIN and the application must be made via the MyGov account of the individual.