Director ID Verification Checklist

Before you start

When you trade with a company on credit, the directors are the people behind it — and the ones you may need a guarantee from. Knowing who they are, and their track record, sharpens your risk view. Have your verification sources ready.

• The company's correct legal name and ACN.
• Access to the ASIC register for current and former officeholders.
• Identity details for any director giving a personal guarantee.
• Your policy on what director history warrants caution.

Step 1 — Identify the directors

1. Pull the company's current directors and secretaries from ASIC.
2. Confirm the names match the people you are actually dealing with.
3. Note the appointment dates — very recently appointed directors of a struggling company can be a flag.
4. Record the directors against the customer file.
5. For any guarantor, capture full legal name, date of birth and residential address as needed for the guarantee.

Step 2 — Check the director ID requirement

1. Be aware that company directors in Australia are required to hold a unique director identification number (director ID).
2. Where relevant, ask the director to confirm they hold a director ID.
3. Treat a director who cannot or will not confirm one as a prompt for closer scrutiny.
4. Use the director ID regime as a reminder that the person is accountable and traceable.
5. Keep your verification notes with the account.

Step 3 — Assess director history

1. Search whether the directors have been involved in companies that failed, especially recently.
2. Watch for phoenix-style patterns — the same people behind a string of collapsed entities.
3. Check for disqualified directors or adverse ASIC actions.
4. Weigh the findings into your credit limit and your decision on security.
5. If the history is concerning, tighten terms or require a guarantee and PPSR registration.

Common mistakes

• Never checking who is actually behind the company you are crediting.
• Taking a guarantee without confirming the guarantor's identity.
• Ignoring a director's links to previously failed businesses.
• Overlooking very recent director changes at a shaky company.
• Failing to record your director checks for the next reviewer.

Knowing the people behind a customer is part of knowing the risk. The Merion tools help you keep these checks organised. This is general information, not legal advice — verify identity in line with your obligations and policy.