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Duncan Crowther, Head of the Company & Commercial team looks at PSC’s: what they are, how to assign one and how and when to update any PSC information.
What is a PSC?
A Persons of Significant Control (PSC) is described as an individual who holds ‘significant control’ over a company’s day to day operation. A PSC can be an individual, two individuals (e.g. two shareholders each holding 50 per cent of the shares) or in some cases can be a company. In order to be appointed as a PSC, the individual will need to meet one or more of the following criteria;
• Hold more than 25% of the shares in a company or hold more than 25% of the voting rights in a company.
• Have the right to appoint or remove the majority of the directors/management of a company.
• Have the right to exert or is exerting a significant influence or control over a company.
• They have the right to exercise significant influence or control over a trust or a firm that is not a legal entity which itself satisfies any of the first four conditions.
How to assign a PSC
To assign a PSC, an officer of the company will need to;
• Identify the people with significant control over the company and confirm their information. If you do not believe the company has a PSC, Companies House must be informed as the PSC register cannot be left blank.
• Record the details of the PSC on the company’s own PSC register within 14 days.
• Update the information on the company’s own PSC register and at Companies House.
Changes to PSC information
On 30th June 2016 Companies House brought into force a legal requirement for businesses to file their PSC information to meet part of the Small Business, Enterprise and Employment Act 2015. This requirement actioned many companies who did not have an appointed PSC to assign one and in return provided Companies House with more transparency on the ownership and control of companies, which in turn helps to fight financial crime and improve trust in UK companies.
Updating your PSC Information
Since 2017 all changes in PSC information must be updated within 14 days either online or via post. It is important to note that although all PSC information is available to the public, home addresses will be kept hidden on any paperwork available to view.
Failure to provide accurate information on the PSC register and failure to comply with notices are criminal offences which can result in a fine and or a prison sentence of up to two years.
If you would like help filing documents, guidance on how to identify a PSC or general further information please contact the Corporate and Commercial team on 0800 088 6004.