KNOWLEDGE CENTRE

Director Identification Number Scheme | Enterprise Legal

What It Is

On 1 November 2021, the Australian Business Registry Services (ABRS) introduced a requirement for directors of relevant companies to obtain a Director Identification Number (Director ID).

A Director ID is a unique, fifteen-digit identifier given to a director of a company who has completed an application and verified their identify with the ABRS.

A director must personally apply for their own Director ID (and it is is free to apply) and will only ever have one Director ID, regardless of how many companies or similar entities they are a director of.

 

Who It Applies To

Any person who is currently appointed as a director or alternate director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation must apply for a Director ID.

You can apply for a Director ID even if you are not currently a director, and it will stay with you for life and can be used if you do ever become a director.

 

When You Need It

The below table provided by the ABRS succinctly sets out the timeframes for application for a Director ID:

Director ID Scheme – ABRS Timeframes

 

How To Apply 

All Directors must make their own applications – unlike other arrangements for company documents your accountant or registered tax agent is not permitted to do this for you.

In order to apply for your Director ID, you will need to go to the ABRS Website and follow the process to download the myGovID app (this is different to myGov). The direct link is Apply for your director ID | Australian Business Registry Services (ABRS).

As part of the application process, you will need to complete a verification of identity, so before you apply you should gather the following information/documents:

  1. your tax file number (TFN);
  2. your residential address as held by the ATO; and
  3. information from two (2) documents to verify your identity – the relevant documents that ABRS suggest are:
    1. bank account details;
    2. an ATO notice of assessment;
    3. superannuation account details;
    4. a dividend statement;
    5. a Centrelink payment summary; or
    6. a PAYG payment summary.

If you are unable to apply online, you can apply by phone or by paper form, but you will still need the above information / documentation.

 

How Enterprise Legal Can Help

Although we are unable to complete the application for you, we are available to assist you with any questions or concerns you have regarding the Director ID, including whether it applies to you, when you need to make an application by, and any questions about how the application works or the best application method for you.

 

Contact Enterprise Legal's expert Business Law team today:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request


Is It Time For My Organisation Update Our Constitution/Governing Rules?

Whether you refer to them as Governing Rules or a Constitution, you should regularly be considering whether an update is needed. However, knowing when to actually ‘pull the trigger’ on conducting a full review and update (or whether you just need a small internal policy change) is the tricky part, and as is the classic legal response, it ‘will depend’ on a number of factors.

It is absolutely a case-by-case basis, but to help your organisation make that call, we have identified the following key factors to assist:

  1. when the Constitution was last updated;
  2. the structure of your organisation;
  3. the industry in which your organisation operates; and
  4. ‘who’ prepared the latest version of the Constitution.

 

When Was The Constitution Last Updated?

There is no hard and fast rule as to timing, and there is no time limit on how long a Constitution will be effective for. But, the law is constantly evolving and changing and any legal document (or any part of it) could quickly become ‘outdated’. A Constitution holds such significant bearing on how an organisation operates, so it is a document any organisation should at least consider updating every couple of years, to ensure it remains relevant in the context of changes in the law. There may also have been significant changes in the structure or policies of the organisation during that time, so there may be some practical changes to implement.

 

What Is The Structure Of Your Organisation?

A corporate entity with a Sole Director and Shareholder probably doesn’t need regular updates to their Constitution, but a non-profit who reports to members and stakeholders should frequently ensure the organisation keeps their Constitution up-to-date, as that ensures good governance measures are followed and any legislation changes are accounted for. For example, if there have been major changes to a Board of Directors then there are likely going to be significant changes to the way the organisation operates, so a great starting point would be updating the Constitution to ensure the new Board is on the same page with the direction the organisation is going to move to.

Specifically for any Incorporated Associations in Queensland, there have been significant changes to the governing legislation (the Incorporated Associations Act 1981 (Qld)) which have been implemented in stages over the last few years. This means that right now is a great time for any Incorporated Association to review their Constitution.

 

Industry Changes

Depending on the industry in which your organisation operates, there may be more frequent industry changes which ‘force’ an organisation to reconsider various governance measures. For example, an organisation that operates in the technology space is likely going to have more frequent reason to update their Constitution, than an organisation which operates in the retail or hospitality industry, which are much more ‘established’ industries.

 

Who Prepared the Current Constitution?

If your organisation is using a template-style document that has been ‘borrowed’ or is adopting any legislative model rules, they won’t be drafted in a way that accounts for things such as industry changes, specific organisational policies and procedures, nor recent or incoming legal changes. However if you engaged a lawyer to prepare your Constitution and your organisation took the time to carefully consider the impacts it would have on governance, it won’t need to be updated as regularly.

 

What’s Next?

Our expert Business & Property Team has extensive experience in corporate governance, structuring matters with a particular expertise in assisting non-profits, charities and sporting organisations.

If your organisation is considering updating their Constitution, get in touch with our team today and we can help you with updating your Constitution and structuring advice:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request


Residential Conveyancing: Frequently Asked Questions

When buying or selling your property and going through the conveyancing process, it's not uncommon for both the buyer and the seller to have a lot of questions.

These can relate to from how the entire process works, to specific questions about the documents you receive from us. Below are just a few of the questions we often get asked at Enterprise Legal and their answers!

 

Should I Get My Draft Contract Reviewed?

Yes, it is important for both Buyers and Sellers to get the draft contract reviewed. Small administrative errors such as misspelt names or incorrect property details have the potential to cause delays of Settlement or even financial loss when getting the contract amended. It is also important to be aware of all of your rights and obligations under the contract before signing and to ensure everything that has been agreed between the parties is documented correctly prior to signing.

 

Why Is There So Much Paperwork?

Conveyancing in Queensland is guided by a considerable number of State and Federal Legislations as well as specific guidelines which need to be followed. Due to this it is critical that we provide you with as much information as possible outlining your rights and obligations under the contract and equally obtaining as much detail of yourselves and the property to ensure we can meet all of the requirements. It is, after all, a substantial investment you are making! Our First Letter Pack contains a questionnaire that we require you to complete which will provide us with all the information you know about the property, so we then have that knowledge and we can tailor our advice to you based on your specific circumstances and the property.

 

Why Do I Need To Do The Essential Searches? (Buyer)

The essential searches that we undertake are completed for multiple reasons. Searches like Rates and Water Meter Readings are done to ensure that at Settlement, the correct adjustments can be made to account for the Sellers portion of the levies for the current period and that any unpaid rates with Council have been paid. Searches like QCAT and Court Searches ensure that there are no proceedings against the Sellers and/or there is nothing affecting the seller’s ability to sell the property. It is important to do these searches now to avoid potential consequences later or even after Settlement.

 

How Do I Get My Keys Following Settlement? 

Once Settlement has taken place, we will give you a call to confirm the exciting news. We then confirm with the Agent that they are authorised to release the deposit to the seller and to release the keys to the buyer. This is when you arrange with the Agent directly to collect the keys.

If it is a private sale, keys can be exchanged at settlement with the Solicitors, or between the Buyer and Seller directly.

 

At Enterprise Legal we aim to make the process of buying or selling your property as streamlined and stress free for you as we can. Most importantly, this is an exciting time for you and we want you to feel that way!

If you are in the process of purchasing a residential property, EL offers a competetive fixed-fee rate of $1,100 + disbursements, and if you are selling your residential property, our fixed fee is $660 + disbursements.

Get started today; contact EL’s Property Conveyancing team for a hassle-free property transaction:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request


Oh Look! A Creditor’s Statutory Demand

If you have received a Creditor’s Statutory demand DO NOT DELAY! It is essential that you act and immediately seek legal advice.

The 21-day time limit is very strict and time starts ticking from the moment of delivery to your registered office. This may mean that you already do not have the full 21 days and your options decrease in proportion to the amount of time you have left.

 

1. Be Alert, Not Alarmed

The first step will be to ascertain WHEN exactly the Creditor’s Statutory Demand was served upon your Company’s registered office. A date stamped on the received envelope can be useful. Otherwise, if it was posted to your street address, please keep the envelope as it may be possible to utilize the Australia Post tracking number to ascertain the delivery date.

 

2. Does It Really Matter If I Don’t Know The Exact Date?

It might. The 21-day time frame is strict and cannot be extended. At the expiration of the 21-day time frame a ‘presumption of insolvency’ automatically arises and the presumption exists for 3 months. This presumption can expose your company to an application to the Court for an order that the Company be wound up and a liquidator appointed. Besides losing control over your company and its bank accounts, assets, existing business networks and good will, this can also have adverse consequences on you personally as a director.

 

3. What Are My Options?

a) Call your Enterprise Legal advisor as soon as possible. We will ascertain whether:

i. the Demand is technically compliant with the legislation;
ii. the Demand was properly served; and
iii. the debt is disputed.

b) Depending on those results, most options include:

i. Pay the demand in full and satisfy the debt;
ii. Instructing Enterprise Legal to write that the debt is disputed and include available evidence in support, note any technical failings and demand that the Creditor’s Statutory Demand be withdrawn; or
iii. File and serve a Supreme Court application to have the Creditor’s Statutory Demand set aside.

 

All 3 of the available options MUST occur within the 21-day period, otherwise your company will be statutorily presumed insolvent. There is an exponential increase in costs to save your company after the 21-day deadline has passed.

Have you been served with a Creditor's Statutory Demand?
Front-foot it by making an appointment with EL's Principal Legal Advisor - Disputes, Kirsten Woolston to discuss your options:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request