We would like to make you aware of new changes to the law that came into effect from 06 April 2016 and have a direct impact on companies and LLPs.
From this date companies and LLPs will be required to create and maintain a register of people with significant control (PSC) that needs to be kept with the statutory registers of the company. This register will contain information relating to individuals or entities who exert, or are in a position to exert, influence or control over that company;
We have included a link to a PDF report containing Guidance for PSCs and which note the following;
A PSC is an individual who meets any one or more of the following conditions in relation to a company:
- Directly or indirectly holding more than 25% of the shares (sections 5.1 and 5.4)5,
- Directly or indirectly holding more than 25% of the voting rights (sections 5.2 and 5.4),
- Directly or indirectly holding the right to appoint or remove the majority of directors (sections 5.3 and 5.4),
- Otherwise having the right to exercise, or actually exercising, significant influence or control (section 5.5),
- 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 (section 5.6).
You might find it easy to identify your interest in a company and determine whether you are a PSC, or your situation might be more complex and need clarification between you and the company. Some companies will not have anyone who meets the conditions, whereas other companies will have several people who meet one or more of the conditions and are PSCs (all of whom must be on the PSC register).
Please note that from 30 June 2016 companies and LLPs will have to deliver this information to Companies House in a Confirmation Statement (which is replacing the Annual Return)
The Gov.uk website provides full guidance notes on identifying PSCs and creating the register;
Should you have any queries please do not hesitate to contact us on 01872 271655 or via our Contact Page