12th June 2016
Are you ready for the PSC Register deadline on 30th June 2016?
Since April of this year companies and LLPs must have a register containing details on people with significant control or influence (PSCs). As of 30 June 2016, the PSC register will be open to public inspection and companies and LLPs must provide this information to Companies House when filing annual confirmation statements. Only publicly traded companies that are already subject to transparency regimes are exempt.
Any individual who meets at least one of five conditions will be caught by the regulations and must appear on the PSC register. Crucially, it is not just shareholders or members of an LLP who might appear – third parties who satisfy one of the following must also be shown:
- Directly or indirectly holds 25% or more of the shares in a company;
- Directly or indirectly holds 25% or more of voting rights in a company;
- Holds the right to appoint or remove a majority of the board of a company;
- Has the right to exercise, or actually exercises, significant influence or control over a company; or
- Has the right to exercise, or actually 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 meet any of the conditions above.
A company must take reasonable steps to identify anyone who should be registered on the PSC register. There may be justified reasons for which PSC information cannot be provided, in which case other explanatory statements must be provided. The PSC register must never be left blank.
Failure to provide accurate information on the PSC register and failure to comply with notices requiring someone to provide information are criminal offences, and may result in a fine and or a prison sentence of up to two years.
For further advice and guidance on the new regime please contact a member of the Hamlins corporate team.