By Philip Hayden, 27th January 2016
The Small Business, Enterprise and Employment Act 2015 which was given royal assent on the 26th of March 2015, has been introducing changes to company law in the United Kingdom since May 2015.
One of the main features soon to be introduced by the Act is the Register of People with Significant Control (“PSC”). From April 2016 all companies will be obliged to keep a register of any person who is deemed to be in significant control of the company. This register then must be included with the company’s Confirmation Statement from June 2016.
Identifying a PSC
There are five conditions which can identify a PSC of a company. Meeting any one of the below conditions will qualify an individual or legal entity for the register
- Condition One – A person/entity holds, directly or indirectly, more than 25% of the shares in the company.
- Condition Two – A person/entity holds, directly or indirectly, more than 25% of the voting rights in the company.
- Condition Three – A person/entity holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of the company.
- Condition Four – A person/entity has the right to exercise, or actually exercises, significant influence or control over the company.
- Condition Five – A person/entity exercises significant influence or control over the trustees of a trust or partners of a firm, where that trust or firm is not a separate legal entity, but where those trustees or partners would otherwise meet the conditions above.
To view the full timeline of changes to company law in the United Kingdom please click here. For more information on company law changes in the United Kingdom or to register a company please do not hesitate to contact us on +353 1 6874518 / +49 3088789328 or alternatively you can fill out a contact form on our website and a company formation agent will be in contact as soon as possible.