From April 2016 new rules were introduced which require companies to keep a register of people with significant control (PSC register). From 30 June 2016 details of these PSCs have to be filed with Companies House as part of the new annual Confirmation Statement (CS01), formerly the Annual Return (AR01).
This means that an officer of the company is required to:
- identify the PSCs and confirm their details
- record the details of the PSCs on the company’s own PSC register
- file the PSC information with the central public register at Companies House
- update the information both on the company’s own PSC register and with Companies House when the next Confirmation Statement is due.
A PSC is an individual who meets one or more of the following conditions (with additional conditions applying in some circumstances):
- holds more than 25% of shares in the company
- holds more than 25% of voting rights in the company
- holds the right to appoint or remove the majority of the board of directors of the company
Failure to comply with the new rules is a criminal offence and could result in a fine or a prison sentence of up to 2 years.
More information on the new PSC requirements is available here, or please contact us for more guidance.