All companies must maintain a register of PSCs (Person of Significant Control). Unlike company directors and shareholders, which you can decide to alter by appointing or resigning as director or changing share ownership levels, the PSC register is purely a factual record of who (including other companies) owns the company and who has control within the company.
A PSC is an individual (or company) who meets one or more of the following conditions:
(i) An individual who holds more than 25% of shares in the company.
(ii) An individual who holds more than 25% of voting rights in the company.
(iii) An individual who holds the right to appoint or remove the majority of the board of directors of the company.
(iv) An individual who has the right to exercise, or actually exercises, significant influence or control over the company (only used in limited situations).
Is is essential that all companies (also applies to LLPs) keep an accurate and up to date register of PSCs as there can be significant penalties for any company that does not.
Correctly identifying and recording PSC details for most companies will be based on who the shareholders of the company are, but for larger or more complex companies the correct identification and recording of PSCs can be more difficult as the legislation is is very detailed in its requirements.
As part of all our company secretarial services we always ensure that your company PSC register is updated correctly to reflect any changes that have been made. Whether its a change of director or a transfer of shares we will make sure that the company registers and public record correctly reflect the current position of the company.
If your company is in a position where it needs to review recorded PSC details we can also help. We can run through company details and then look at the correct recording of PSC details for your company. We can look at beneficial ownership, UK company ownership, defining significant control within a structure and recording multiple PSCs as may be required to make sure you company PSC register is accurate and compliant.
For more information or if you would like to go ahead with reviewing and updating your company PSC information please contact us at [email protected] or call 0161 477 8282.