Who are people with significant control?
The register of people with significant control (PSC register) lists individuals who exert significant control over UK companies and came into effect 6 April 2016.
A PSC is anyone in a company or LLP who meets one or more of the conditions listed in the legislation. This is someone who:
- Owns, directly or indirectly more than 25% of the company’s shares;
- Holds, directly or indirectly more than 25% of the company’s voting rights;
- Holds the right, directly or indirectly to appoint or remove the majority of directors;
- Has the right to, or actually exercises significant influence or control over the company;
- Holds the right to exercise or actually exercises significant influence or control over a trust or company that meets one of the first 4 conditions.
Since the PSC rules were introduced in April 2016, the information required to be filed with Companies House, on incorporation, was updated on an annual confirmation statement (CS01). This changed with effect from 26 June 2017, and now Companies House must be notified (using forms PSC01 to PSC09) whenever there is a change to the PSC register. Companies and LLPs have 14 days to update their PSC register and another 14 days to send the information to Companies House.
There were also changes for Scottish Limited Partnerships (SLP) and General Scottish Partnerships (SP) that come into effect on 24 July 2017. These are also required to provide PSC information.
Companies need to make their PSC register available for inspection on request at the company’s registered office or be able to provide copies. The requirement to hold other information such as a register of members and a register of directors has not changed.
There can be significant penalties for companies and officers that fail to take reasonable steps to identify PSCs. Failure to comply with the PSC regime means you could be committing a criminal offence and subject to fines or imprisonment.