The Small Business, Enterprise and Employment Act 2015 introduced the People of Significant Control registers (PSC register). From 6 April 2016 all companies and LLPs will be required to keep the new statutory PSC register in preparation for the need to file this information at Companies House from 30 June 2016.
A PSC is anyone in the company who meets one or more of the conditions listed in the legislation.
This is a person who:
- Owns more than 25% of the company’s shares;
- Holds more than 25% of company’s voting rights;
- Has the right to appoint or remove a majority of the board of directors;
- Has significant influence or control over the company; or
- Has significant influence or control over a trust or firm.
One of the reasons behind this change is to improve transparency around who owns and controls UK businesses. This is also a measure to improve the UK’s reputation as a fair place to do business.
The register looks straight to the top to find out who the ultimate owner or controller of an entity might be. This would include an LLP and also covers foreign jurisdictions.
The penalty to directors or Persons of Significant Control who don’t comply with the statutory requirement is a fine or a two year jail sentence.
You may elect to keep your PSC register on the public register at Companies House or to hold the register privately.