Western Australian Directors Fined for Failing to Comply with Director Identification Requirements

Two Western Australian directors have been convicted in the Perth Magistrates Court and fined $5,000 each for failing to comply with director identification requirements.

Convictions and Fines

On 3 May 2024, Alexander Henry and Luke David Mason were convicted ex-parte for contravening section 1272C(2) of the Corporations Act 2001, which mandates the possession of a director identification number. Alexander Henry, a director of Global Material Solutions Australia Pty Ltd, Alex Henry Holdings Pty Ltd, Duke Shipping Containers Pty Ltd, and AII Australia Pty Ltd, faced the court's decision. Similarly, Luke David Mason, a director of LDM (WA) Pty Ltd and LDM Corporate Enterprises Pty Ltd, was also found guilty of the same offence.

Magistrate Crawford SM emphasized that the new Director ID scheme was enacted for a proper public purpose, with considerable efforts made by relevant government agencies to ensure compliance. Despite these efforts, both directors failed to obtain their required director identification numbers.

In addition to the $5,000 fines, Mr. Henry and Mr. Mason were ordered to pay costs amounting to $171.71 each.

Background on Director Identification Requirements

The Director ID scheme, managed by the Australian Business Registry Services, requires all directors to verify their identity before receiving a director ID. The application deadlines are as follows:

  • Directors appointed before 1 November 2021 had until 30 November 2022 to apply.
  • New directors appointed for the first time between 1 November 2021 and 4 April 2022 had 28 days from their appointment to apply.
  • From 5 April 2022, intending new directors must apply before being appointed.

Failure to comply with these requirements can result in significant penalties, with the maximum penalty for an offence against section 1272C(1) of the Act being 60 penalty units, equivalent to a fine of $18,780.

This case serves as a reminder to all directors of the importance of adhering to regulatory requirements to avoid legal consequences and financial penalties.