Last year saw a whole host of changes come into effect at Companies House. Amongst the new measures introduced was the requirement for companies to keep a register of Persons of Significant Control (PSCs).
New rules, which came into effect on 26 June 2017, mean that companies must now report all changes to their PSC information as they take place. They will no longer be able to wait for the annual confirmation statement to state any variations.
Companies only have up to 14 days to update their PSC register and another 14 days to notify Companies House of the changes.
A Person of Significant Control is someone who meets one or more of the following conditions:
- Directly or indirectly owns more than 25 per cent of shares in the company (any class of share)
- Directly or indirectly holds more than 25 per cent of voting rights in the company
- Directly or indirectly has the right to appoint or remove most of the board of directors of the company
- Has the right to exercise, or exercises, significant influence or control over the company; and/or
- Has the right to exercise, or exercises, significant influence or control over the activities of a trust or firm which is not a legal entity, but which would itself satisfy any of the first four conditions if it were an individual
Companies must have taken steps to identify PSCs, record their details, and update the register when circumstances change. Failure to do so can result in penalties. Anyone refusing to provide PSC information is committing a criminal offence.
Partner at George Hay, Martin Williams, commented: “Considering such major alterations to the rules, as well as the stringent timescales associated with the new reporting procedures, it is imperative that you fully understand your obligations and notify your accountant of any reportable changes at the earliest opportunity.”
If you’d like to find out more about the changes or are concerned about what they mean for your company, contact us today on 01462 708810.