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Electronic Communication for Companies

Electronic Communication for Companies

The government has announced that a bill has been introduced to permanently allow companies the use of technology to meet their regulatory requirements, which was allowed temporarily as a result of Covid. 

The changes will allow for the following; 

  • Allow meetings to be held physically, as a hybrid, or (if expressly permitted by the entity’s constitution) virtually, provided that members, as a whole, are given reasonable opportunity to participate in the meeting.
  • Allow companies (and registered schemes) to meet their obligations by being able to send documents in hardcopy or soft copy, and give members the flexibility to receive documents in their preferred format and; 
  • Provide flexibility to allow documents, including deeds, to be validly executed in technology neutral and flexible manners, including by company agents.

What is a director ID number?

All company directors must now hold a director identification number (director ID). ASIC introduced the new requirement earlier this year. Here’s what you need to know.

What is a director ID number?

If you have verified your identity with the Australian Business Registry Services (ABRS), you will need a unique identifier. This is your director ID.

How do I know if I need a director ID?

You will need a director ID if you are the director of an Australian corporation. A ‘director’ includes an alternate director who is acting in that capacity.

When do I need to apply for a director ID?

Please refer to the table below for the transitional arrangements for existing and new directors.

Date person becomes a directorMust apply
On or before 31 October 2021By November 2022
Between 1 November 2021 and 4 April 2022Within 28 days of appointment
From 5 April 2022Before appointment


How do I apply for a director ID?


To apply for your director ID, you will need to:

1.  Set up a myGovID account. This must be done by yourself as no one is permitted to do so on your behalf.https://www.mygovid.gov.au/set-up

2. Once you’ve verified your identity, you need to apply for a director ID via the ABRS website. https://www.abrs.gov.au/ from November 2021


Do I need to let Aspect know my director ID?


If Aspect Accountants and Advisors is your ASIC agent, we will contact you to get your director ID. We also ask that you provide us with the director ID of all directors of the company.  Please ensure you notify all directors to apply for a director ID.

For more information on this new requirement please visit: https://www.abrs.gov.au/director-identification-number
          

Reminder of SG obligations for September 2021 quarter

Under the Superannuation Guarantee (‘SG’) scheme, employers are required to make quarterly contributions on behalf of their employees.

From 1 July 2021, the minimum contribution required is 10% (up from 9.5%) of an employee’s Ordinary Time Earnings base, up to a maximum quarterly contribution base of $58,920 for 2021/22.

Employers are reminded that the due date for making SG contributions for the September 2021 quarter is 28 October 2021.