DID YOU KNOW?
Changes to the PSC Register
Companies, Limited Liability Partnerships and certain Scottish Partnerships have been required to keep a register of the ‘People with Significant Control’ (PSC) since April 2016.
Generally speaking, this means that an individual or other company/LLP would be considered a PSC if they meet one or more of the following requirements:
- own more than 25% of shares;
- hold more than 25% of voting rights;
- have the right to appoint or remove the majority of the board of directors; or
- directly or indirectly exercise significant influence or control over the entity.
Information about a PSC must be registered at Companies House and the entity must keep its own records also.
Recent changes have been introduced and it is now a requirement for Companies, LLP’s and certain Scottish Partnerships to update Companies House and their own registers on particular changes in respect of the PSC. This includes where a PSC changes their personal information, if someone no longer qualifies as a PSC or if someone joins the company or increases their shares/voting rights and becomes a PSC. This information can no longer wait until the Confirmation Statement (previously Annual Return) is completed and must be filed before then with Companies House and in their own records.
This will be particularly pertinent for any changes to the membership of a business, be it by way of the sale or purchase or transfer of shares or where members have joined or left, or where there is succession or retirement.
Businesses must be aware of these additional filing requirements since a failure to provide accurate information on the PSC Register or to comply with notices may result in a criminal offence being committed.
If you have any questions regarding these changes or require any assistance with your business’ PSC Register or other corporate or commercial work, please do contact our Isabella MacRitchie on IsabellaMacRitchie@macphee.co.uk or Gary Somers on GarySomers@macphee.co.uk.