The New PSC Register : Your obligations at a glance

2 March, 2016
by: Cripps

From 6 April, most companies and limited liability partnerships (LLP’s) will need to keep a new register with their company books, recording the main owners of the business. This is called the register of Persons with Significant Control (PSC) Register, and is required under the Small Business, Enterprise and Employment Act 2015[1].

 

The new rules come as part of a number of reforms to company law aimed to increase transparency and trust in UK companies.

 

What needs to be on the Register?

For most companies, the PSC Register will need to record those individuals or UK registered limited companies (termed “Relevant Legal Entities” (RLE) in the legislation) who own more than 25% of the shares or voting rights.

 

However, the requirements of the statute are broad, and companies will also need to record those who have significant influence or control of the company in other ways (see our more detailed guidance note here).

 

When does the information have to go to Companies House?

 The information on the PSC Register needs to be filed with Companies House from 30 June 2016.

 

What steps do I need to take now?

Directors and company secretaries need to familiarise themselves with the requirements for the Register and start getting together the required information. Start writing to shareholders, checking Articles of Association and any Shareholders Agreements in place for any provisions relating to voting control and thinking about who else other than the main shareholders may have effective control over the company (shadow directors etc). Details of individual owners need to be confirmed with them before they can be entered on the Register so action needs to be taken.

 

Anyone who thinks they themselves are a PSC needs to contact the company and give their details.

 

If you would like more information or help with compiling a PSC Register, please contact Caroline Nye-Wilkins or Paul Lester.

 

 

[1] The new legislation has brought in amendments to the Companies Act 2006, inserting a new section 21A.