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:
“War is in truth a disease in which the juices that serve health and maintenance are used for the sole purpose of nourishing something foreign, something at odds with nature.”
—Johann Wolfgang Von Goethe (1749–1832)
“I have no purpose to introduce political and social equality between the white and black races. There is a physical difference between the two, which, in my judgement, will probably for ever forbid their living together upon the footing of perfect equality; and inasmuch as it becomes a necessity that there must be a difference, I ... am in favour of the race to which I belong having the superior position.”
—Abraham Lincoln (1809–1865)