Request for Clarification on Business Verification and Personal Information Requirements

I am seeking clarification regarding the recent business verification request, which appears to require excessive personal information.
We do not use your online payment services and only use MYOB for invoicing and bookkeeping. Identity verification should be the responsibility of the ATO, and providing a valid ABN ought to be sufficient.
We take privacy seriously and aim to comply fully while avoiding unnecessary exposure of personal information. Could you please specify under which law or regulation MYOB is authorised to collect personal details of all shareholders, rather than just key officers or directors?
Additionally, I would appreciate details on how MYOB safeguards the security and privacy of this sensitive data.
While committed to complying with all legal requirements, we seek to understand the basis and justification for this level of data collection.
Thank you for your prompt attention to this matter.