Are you compliant? What is it?

From 06 April 2016, all UK corporations and LLPs must identify those who are their ultimate beneficial owners and controllers and file such information with the Registrar of Companies from 30 June 2016.

This sounds like more red tape…why is it being done? The idea is to improve transparency around who owns and controls UK businesses in order to maintain the reputation that the UK is a fair place to do business.

What do I need to do? Firstly company directors should review their corporate structures and internal processes to see who might be a PSC. The headline PSC criteria may be summarised as follows:

• Persons who hold more than 25% of a company’s shares
• Persons who hold more than 25% of voting rights in a company
• Persons who can appoint or remove majority directors
• Persons who exercise significant influence or control over the company

Corporations will need to take all reasonable steps to make sure they have identified and registered persons with significant influence or control…they must keep a register even if they feel there are no PSCs. Naturally, all registers must be kept up-to-date, renewed annually and made available to enquirers.

If you feel you need assistance with assessing who might be a PSC within your organisation please contact us for a free consultation.