From January 2016, the PSC register (Person with Significant Control register) will be introduced and will require companies to maintain a list of people who have a major influence on their business, in the hope of improving transparency. The government aims for the register to be made public and searchable on Companies House from April 2016; the public will then have access to the following information - name, trade address, nationality and date of birth of the people who control a company. Failure to comply with the disclosure obligations may result in criminal sanctions and/or penalties.
So, what companies need to maintain a PSC register? The UK Government are not playing about with this and have made it mandatory for all businesses, even dormant and subsidiary companies. Limited Liability Partnerships can also expect, under secondary legislation, to be liable. The only group of companies exempt are those who are publicly traded.
Will you be on the register? Those who meet the following criteria must be listed on the register:
- Has the right to exert ‘influence or control over a company’
- Is entitled to 25% of Company shares (directly or indirectly)
- Is entitled to 25% voting rights of the company
- Has the authority to appoint, demote or remove a majority of the board of directors
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