The new PSC register directly affects companies, shareholders and beneficial owners as their information has to be included in the new ‘Person of Significant Control (PSC) Register’ in an effort to increase transparency.
As of 1st January 2016 all UK companies (other than those subject to separate disclosure requirements) are now required to maintain a PSC Register in order to achieve increasing accountability through transparency of corporate ownership, structure and control.
This register includes specified particulars of any person who has ‘significant control over the company’ along with the nature of that control. A person with significant control is deemed as any person who holds more than 25% of the shares and voting rights within the company. Further guidance on what constitutes ‘significant influence or control’ is expected.
The PSC Register should be readily available for inspection and some information will be publically accessible via individuals accessing Companies House (from 30th June 2016), both available free of charge. Information supplied from the company to Companies House will be submitted as part of their annual confirmation statement, replacing the annual return.
An application may be made to Companies House to omit material from the public register or to prevent disclosure of PSC Register information. This is however a complex regime limited to circumstances and specialist advice should be taken if an application is being considered.
If companies do not comply with their duties in relation to the PSC Register they face criminal liability and failure to respond to a company’s request for information will entitle the company to freeze the interest until compliance. This may lead to a loss in dividend, voting and other rights while the interest is frozen.
Companies should already be compliant with PSC Register regulations however if you are unsure how these regulations will affect your business please do not hesitate to contact one of our company Lawyers.
For further advice or assistance on any Company/Commercial Law matter contact our Bradford Solicitor and Commercial Law Specialist Umberto Vietri 01535 613674 firstname.lastname@example.org
Partner and Commercial Law Specialist
Tel: (01535) 613 674