From 6 April 2016, companies will have to maintain a register of 'People with Significant Control' (PSC).
The press release from the Department of Business and Skills states:
'The PSC register will include information about the individuals who own or control companies including their name, month and year of birth, nationality, and details of their interest in the company. From 30 June 2016, UK companies (except listed companies) and limited liability partnerships (LLPs) will need to declare this information when issuing their annual statement to Companies House.
Department for Business Minister, Baroness Neville Rolfe said:
Companies that disguise who owns or controls them are not playing by the rules and have something to hide. This register, the first of its kind in the world, will help tackle abuse of corporate entities. This is part of our commitment to creating an environment of trust and accountability for business.
A person of significant control is someone that holds more than 25% of shares or voting rights in a company, or who has the right to appoint or remove the majority of the board of directors.'
If you run a company, you will need to consider whether these requirements apply to you. In particular you will need to identify:
- Whether your company needs to maintain the register
- How to identify the person with 'significant control', and
- What steps you might need to take if your company is controlled by a legal entity and not a person
To discuss this or other company and commercial related issues, contact us.