DirectorID: You do not need to comply

Debbie from Copyright Claim Services has done an in-depth investigation into the legality of the Director ID and found that it appears to have no basis in law.

After researching the laws to find the enacting Act that would empower the demand for all Company DIrectors to register for a MyGovID, Debbie was unable to find the Act. She has written to Martin Kingston, Stephen Donoghue and Mark Dreyfuss at Australian Government Solicitor seeking clarification, but they have not replied. Therefore, they have acquiesced and admitted that there is no Act.

If you would like to write to them as well, please ask the same questions Debbie did. We need answers.

If they cannot answer, it stands to reason that the demands and threats by the government for all Company Directors to register for a MyGovID are all bluff and totally unlawful. 

The Corporations Act and a Company Constitution

But Debbie went even further. She researched the Corporations Act and what she found will surprise many business leaders. 

When a company or its representative accountant registers under the Corporations Act with ASIC, that corporation tacitly accepts the Act as their corporate constitution. 

But what your accountant may not be aware of is that if a company writes its own constitution, their constitution supersedes the Corporations Act and it becomes the law that the company must obey. Knowing this, it is a simple matter to write your own company constitution, or to amend it if you already have one, to include a stipulation specifically stating that its Directors may not register for any kind of ID 

Conclusions:

  1. The demands and threats for company Directors to register for a Director's ID do not have to be complied with. Any contract that depends on threats, coercion, or fraud is null and void. Fraud always vitiates any contract.
  2. To protect the company, all the Director need do is write a Company Constitution to govern the behaviour of the company, and include the statement that company directors (include all staff as well, just to be sure), can not ever register for any form of government control ID.

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