Purpose of ACNs and ABNs
Prior to the introduction of the 9 digit ACN, company information was filed under the company name, which might vary from 1 to 80 characters. This is an inefficient way to run a filing system, and can lead to problems, particularly if two company names differ in one of the middle digits, for example: Strudle Pty Ltd and Stradle Pty Ltd.
Unique identifiers, like the ACN, help reduce fraud by firstly clearly differentiating companies and/or subsidiaries with similar names, since companies with similar names will tend to have completely different ACNs.
Also if a company changes its name for any reason, including phoenix company, the ACN remains the same.
Read more about this topic: Australian Company Number
Famous quotes containing the words purpose of and/or purpose:
“What if we fail to stop the erosion of cities by automobiles?... In that case America will hardly need to ponder a mystery that has troubled men for millennia: What is the purpose of life? For us, the answer will be clear, established and for all practical purposes indisputable: The purpose of life is to produce and consume automobiles.”
—Jane Jacobs (b. 1916)
“Let our hearts, as subtle masters do,
Stir up their servants to an act of rage
And after seem to chide ‘em. This shall make
Our purpose necessary, and not envious;
Which so appearing to the common eyes,
We shall be called purgers, not murderers.”
—William Shakespeare (1564–1616)