Australia's director ID is personal, mandatory, and slower to obtain from overseas
Every director of an Australian company must hold a Director Identification Number before appointment, and identity verification takes materially longer for an applicant outside Australia.
1 December 2022
The director ID regime requires each director to obtain a permanent personal identifier from the regulator. It cannot be obtained by the company on the director's behalf, and it must be in place before the appointment.
Separately, s.201A(2) of the Corporations Act requires a public company to have at least three directors, at least two of whom ordinarily reside in Australia. On a large listed board this is rarely binding; on a small one it is often the reason a foreign candidate is declined.
The ASX Corporate Governance Principles recommend a majority of independent directors and an independent chair who is not the CEO, reported on an if-not-why-not basis under Listing Rule 4.10.3.
What it means for a cross-border candidate
Start the director ID application the week the conversation turns serious, not the week before the board meeting that will appoint you. It is the most common avoidable delay in an Australian appointment timetable for an overseas candidate, and it is entirely within your control.
This paragraph is the Global ID Exchange’s own reading, not a statement by any authority named above. Everything in the body of this item is a matter of record; this is judgement.
Sources
- Corporations Act 2001 (Cth), s.201A(2)
- ASX Corporate Governance Principles and Recommendations, 4th edition, Recommendations 2.4 and 2.5
Rules change and transitional provisions frequently apply. Verify against the primary instrument before you rely on any provision described here.
Read next: the Australian regime in full.
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