Complying With the New UK Register of Persons with Significant Control - March 2016
The Small Business, Enterprise and Employment Act 2015 received Royal Assent in the United Kingdom in March 2015, introducing a number of significant changes to UK company law. The most significant is that UK companies now must maintain a register of Persons with Significant Control (PSCs). Companies, their officers, shareholders and stake- holders that fail to maintain an accurate PSC register may be subject to criminal penalties or other sanctions.The new PSC register, which is separate to the register of members recording legal ownership of a company’s shares, must identify individuals with significant beneficial interests or other controlling rights in a company. The register will be publicly available through the UK Companies House website.
UK companies will need to maintain a PSC Register at their Registered Office address from 6 April 2016 and to file the Register at Companies House from 30 June 2016.
Definition of a PSC
A PSC is an individual who meets any of the following five conditions:
- Directly or indirectly holds more than 25% of the nominal share capital of the company
- Directly or indirectly controls more than 25% of the votes at general meetings
- Directly or indirectly is able to control the appointment or removal of a majority of the board
- Actually exercises, or has the right to exercise, significant influence or control over the company
- Actually exercises, or has the right to exercise, significant influence or control over any trust or firm (which is not a legal entity) which has significant control (under one of the four conditions above) over the company
How We Can Help
Our experienced UK company services team can assist UK companies in meeting their new PSC obligations.