What Is A Person of Significant Control?
When you start running a company, you have to declare your Persons of Significant Control (PSCs) to Companies House. We've compiled this helpful post to clarify what a PSC is and what needs to be included in the PSC register.
Why was the PSC register introduced?
Following the 2013 G8 Summit, it was felt that there needed to be more corporate transparency, especially in companies with a complex ownership structure. The PSC register contains information about the individuals who have ultimate control over the company with the aim of creating greater transparency.
What is a Person of Significant Control?
In broad terms, it’s a person with significant control over a company. Usually, they have to meet one or more of five conditions:
- They own more than 25% of the company’s shares
- They hold more than 25% of the company’s voting rights
- They have the power to appoint or remove a majority of the company’s board
- They can exercise significant influence or control over the company
- They can exercise significant influence over a trust or firm that is not a legal entity in itself.
A Person of Significant Control is not necessarily a majority owner or director of the company; they could be an investor or employee who has significant control over the company.
What is the PSC register?
All limited companies are required by Companies House to keep a record of their Persons of Significant Control. This register needs to be kept in addition to the company register, which records directors and shareholders.
The PSC register contains information such as:
- PSC name
- Residential address
- Service address
- Date of birth
- The date they joined the register
- The nature of their significant control
What do I need to do with the PSC register?
As a company director, you need to keep an up-to-date copy of the PSC register, either digitally, or as a hard copy at the registered office address.
It is your responsibility to keep the PSC register up-to-date any time a change is made in regard to PSCs.
You also need to annually submit the details of your PSC register to Companies House with the Confirmation Statement.
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