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:
“The purpose of education is to keep a culture from being drowned in senseless repetitions, each of which claims to offer a new insight.”
—Harold Rosenberg (1906–1978)
“I think the worst thing this nation could do for humanity would be to leave any uncertainty as to our will, our purpose and our capacity to carry out our purpose.”
—Hubert H. Humphrey (1911–1978)