Did you know that, from 6 April 2016, your company is legally required to keep a new register of any People with Significant Control (PSC)? And that not doing this is a criminal offence that could lead to a heavy fine or even prison for the Directors?
What do you need to do?
The Companies House guidance states that you:
• must take reasonable steps to find out if there are people who have significant control over the company
• should contact these people, or others who might know them, to confirm whether they meet one or more of the conditions and, if they do, get the relevant information to go on the company’s PSC register;
• must put the information on your company’s own PSC register
• must file the information at Companies House to be made available on the central public register
• must keep the information up-to-date.
What is a PSC?
A PSC is defined as someone who meets any of the following criteria:
• Directly or indirectly holding more than 25% of the shares
• Directly or indirectly holding more than 25% of the voting rights
• Directly or indirectly holding the right to appoint or remove a majority of directors
• Otherwise having the right to exercise, or actually exercising, significant influence or control
• Having the right to exercise, or actually exercising, significant influence or control over the activities of a trust or firm which is not a legal entity, but would itself satisfy any of the first four conditions if it were an individual.
What are the next steps?
For most small businesses, this will be relatively straightforward. The PSCs will be the owner/shareholders and you’ll know exactly who these are.
You will need to maintain a register of the PSCs and then file with Companies House from 30 June 2016. You’ll do this via the annual “Confirmation Statement” that will replace the Annual Return that companies currently submit.
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Added by Jon Davies
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