Many people will now be aware of the stepped changes being introduced by The Small Business, Enterprise and Employment Act 2015.
The latest change that you should be aware of is the requirement to create a register of persons with significant control (PSC) of a company (or LLP but the rules do not apply to PLCs).
Each company and LLP is required to take reasonable steps to identify any such persons and create a register. Come 6 April 2016 the creation and maintenance of the register will become mandatory so you need to start preparing now!
And what is a PSC? In brief it’s an individual who meets at least one of the following criteria:
1. direct or indirect ownership of more than 25% of the issued share capital;
2. direct or indirect control of more than 25% of voting rights at general meetings;
3. direct or indirect rights to appoint or remove directors holding the majority of voting rights at board meetings;
4. has the ability to exercise significant influence or control over the company (in the event that 1 to 3 above do not apply)
5. has the ability to exercise significant influence or control over the activities of a trust or entity which itself satisfies one of the criteria in 1 to 3 above.
Different rules apply to parent companies and subsidiaries and your usual contact from the Hedges business services team will be happy to provide further clarification and advice if required.
From January 2016, Companies will be required to keep a Register of Persons with Significant Control (PSC) and from April 2016, this will need to be filed with the Registrar of Companies. This register has been introduced to increase transparency of ownership within companies.