On 21 December 2015, the Department for Business, Innovation and Skills ("BIS") published draft non-statutory guidance for consultation on the requirement for companies to maintain a register of people with significant control (a "PSC").
The draft sets out government guidance relevant to the interpretation and application of new Part 21A of the Companies Act 2006, which substantially comes into force on 6 April 2016.
The guidance covers the process of identifying and recording PSCs. It does not cover detail of how to complete filings in relation to PSC information at Companies House.
The draft also provides guidance on how to apply the specified conditions for determining whether an individual is or is not a person with "significant control and influence." The guidance states that a person will have significant control over a company if one of the specified conditions is satisfied. The first three specified conditions require the holding of more than 25 per cent of the company's shares, or voting rights in the company, or the right to appoint or remove the majority of the board of directors. The fourth and fifth specified conditions require a person to have "significant influence or control" either over the company itself, or over the activities of a trust or a firm which meets any of the other specified conditions in relation to the company.
The consultation closed on 11 January 2016.
A copy of the draft guidelines is available here: https://www.icsa.org.uk/assets/files/pdfs/Policy/PSC-Draft-Guidance-for-companies-17-December-2015.pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
