Persons With Significant Control (PSC)

When I was at school, the plural of person was people, so it is one of my pet hates that “persons” has crept into the English Language and is even used on the BBC!  It is now embedded in law, care of the Small Business Enterprise and Employment Act 2015. So please forgive me for having to use the word Persons when I know it should be People.

So that’s off my chest for today.

Man Pushing Button Shows ControlWhat is this “persons with significant control all about?  You need not worry about it is you are a sole trader as this bit of legislation is only relevant for UK Companies and UK Limited Liability partnerships. The gist is that if a person, or people, have significant control over a company, then the company must keep a local register of this from 6th April 2016 and then file these details with Companies House from the 30th June 2016

Information that must be on the register (once confirmed):

  • Full name;
  • Date of birth;
  • Nationality;
  • Part of the UK where the PSC usually loves;
  • Service address of the PSC;
  • Residential address of the PSC – must not be disclosed when the register is inspected.;
  • The date the person became a PSC (or 6th April 2016 if already a PSC);
  • Which condition (see below) are met for the PSC.

A PSC is an individual who meets one or more of the following conditions:

  1. An individual who holds more than 25% of shares in the company;
  2. 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;
  1. An individual who has the right to exercise, or actually exercises, significant influence or control over the company
  2. Similar rules for a trust or firm if it met the above, and the people who have significance over the activities of that trust or firm.

Notice needs to be sent to the possible PSC by post or email to confirm their status. A template can be made available for this if it is an individual who is not a director of their own company. It needs to be noted that if someone refuses to provide the information, they are committing a criminal offence.  For most small & micro companies the PSC is the same as the director, so the extra disclosure is negligible. The PSC register needs to be disclosed to Companies House as part of their annual return from the end of June 2016. (The annual return has been renamed as Confirmation Statement which is good news as unwary new directors think the annual return is the same as their annual accounts filing.)

More information can be found at:  https://www.gov.uk/government/publications/guidance-to-the-people-with-significant-control-requirements-for-companies-and-limited-liability-partnerships

Nope – still not comfortable with “persons”. urggg

 

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Disclaimer

 

The information contained in this document is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is provided or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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