Do you own a business or have a controlling interest in one? New legislation requires companies to keep records of ‘persons with significant control’ (“PSCs”).
The register is exactly what it says on the tin: a list of those individuals who have a significant controlling interest in the company. The legislation does give some guidance as to the categories of people who will be PSCs:-
- an individual who holds more than 25% of shares in the company;
- an individual who holds more than 25% of voting rights in the company;
- an individual who holds the right to appoint or remove the majority of the board of directors of the company; and
- an individual who has the right to exercise, or actually exercises, significant influence or control over the company.
Where a trust or company would satisfy any of the above conditions, then any individual holding influence or control over the activities of that trust or company also need to be considered.
Steps to take
The company must take reasonable steps to find out whether it has any PSCs, including contacting them and then collating certain information regarding them (their nationality, service address, date of birth etc.) This information is then to be included on the company’s PSC register. The register must be kept updated.
The register cannot be blank. If there are no PSCs, then a statement to that effect must be placed on the register in the required format.
Confirmation statement
From 30 June 2016, the current annual return system will be replaced by a new Confirmation Statement. This statement must record any changes in the PSC register over the previous year.
Alternatively, the register can be kept at Companies House and changes recorded as they happen.
Failure to comply with the new requirements is a criminal offence, so it is crucial that the register is kept and that it is accurate.
If you would like to receive further information contact our commercial team.
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