FROM April this year most UK companies (other than those publicly traded companies subject to DTR 5 reporting requirements) and LLPs will have to keep a new statutory register of people with significant control (PSC) and from June will be required to file details of their PSC with the Registrar of Companies.
Failure to maintain an accurate register or file the details with the registrar may result in a criminal offence being committed by the entity and any of its directors potentially resulting in a fine and/or a criminal offence carrying a maximum two year prison sentence.
The regulations require entities to identify the following:
??any individual with directly or indirectly 25 per cent or more of the shares in the company
? any individual with directly or indirectly 25 per cent or more of the voting rights in the company
??any individual with the right to appoint or remove the majority of the company's directors
? where an individual exercises?significant influence or control or has the right to exercise the same over the company but does not meet the criteria at (a) - (c) above; and/or
??where an? individual exercises or has the right to exercise significant control over the activities of a trust or firm that meets any one of the criteria at the points above.
A company must record the details of any individual (or in certain circumstances legal entities) fitting any of the above, including their full name, date of birth, residential address and nature of their significant control over the company.
The company is under an obligation to request this information from anybody they suspect falls into any of the categories above. If the individual fails to respond to such a request then the company can place restrictions on any shares held by the individual including the ability to sell or transfer the shares and/or receive dividends in respect of those shares.
It will be a criminal offence to carry out any of the actions in respect of restricted shares knowing that such shares are subject to those restrictions, potentially resulting in a fine or imprisonment.
Howes Percival LLP can assist your company in ensuring that you prepared for the introduction of the PSC register, as well as providing ongoing support in respect of your company's legal filing requirements.
For further information contact firstname.lastname@example.org