The director ID will help prevent the use of false or fraudulent director identities because it’s an identifier that each director will keep forever
, even if they change companies, stop being a director, change their name, or move interstate or overseas.
The total cost of phoenixing to the Australian economy is estimated to be between $2.9 billion and $5.1 billion annually. Our banks acted quickly to suspend mortgage payments and keep people in their homes during the crisis - doing all this while moving their own operations to a work-from-home footing.
CA ANZ, which counts over 130,000 finance professionals as its members, says the ID will help hold directors personally responsible for their actions, acknowledging that phoenix activity “causes immense harm” to all parties left behind when a company is liquidated without paying its debts.