Starting 6th April 2016, companies will need to start keeping a ‘person with significant control’ (PSC) register, one of the notable changes introduced by the Small Business, Enterprise and Employment Act 2015. The intent of the register is to identify and publish the names of those who hold significant control in businesses as a way to increase UK corporate accountability and transparency. An individual with significant control is defined as the following:
• A person who owns or controls at least 25 per cent of a UK company’s shares or voting rights
• A person who possesses the ability to exercise significant influence or control over the company and/or its board
Also, businesses will be required to include the following information in their registers:
• If they do not have any people with significant control or relevant legal entities to register
• If they have reason to believe there are PSCs, but have not been able to identify them or to confirm their details
• If they have issued a formal request for information and the addressee has not complied within the set timescale
• If they have placed restrictions on the business interest held by a person or entity that has not complied with a formal request for information
• If they do not possess information that can be placed on the register and cannot make any other note as to the progress of their investigation
Starting 30th June 2016, businesses will need to submit their PSC registers to Companies House as part of their annual confirmation statements, which replace annual returns. But, this guidance is still subject to change—the government intends to publish finalised guidance in the coming weeks. For more information, click here.
