What is the PSC Register?
The Small Business, Enterprise and Employment Act 2015 stated that from 6 April 2016, a Persons of Significant Control (PSC) register will need to be maintained by all companies in the UK. The register is the government’s latest tactic in increasing transparency and making it easier to define and identify those with substantial control of business practices.
It is important to note that only individuals can have significant control. A person will be deemed to have significant control and will need to be recorded on the register if they possess:
- 25% or more in shares
- 25% or more in voting rights
- The right to appoint directors, or remove a majority of directors
- The ability to exercise influence or control
- The ability to exercise influence or control over business activities, which may not be a legal entity. However, one of the first two conditions must be satisfied.
Understandably, many charities are unaware that the legislation could directly affect their organisation. Although all UK companies and LLPs will be required to create a register, some charities will have to comply with the legislative changes too. This includes:
- Charitable companies
- Community Interest Organisations (CIO’s)
- Trading subsidiaries of charities
Charitable Incorporated Organisations (CIO), statutory incorporations and Royal Charters will not have to submit a PSC register to Companies House unless they have a trading subsidiary. All registers should have been submitted to Companies House by 30 June 2016.
If you believe your charity may need to submit a register and you are late in doing so, please contact Suda Ratnam at suda@raffingers.co.uk, who will be able to guide you further.
*Source :
http://www.charitylegalupdate.co.uk/2016/01/the-new-psc-register-is-your-charity-prepared.html
http://www.farrer.co.uk/Global/Briefings/Charities%20and%20PSC%20registers.pdf