The Companies Act requires companies to maintain certain information in their company registers – records of company information such as directors, secretaries, shareholders and any charges on the company.
Every year companies had to file an annual return with Companies House confirming the information in these registers:
- Company name and number
- Company type
- Registered office
- Officer details – directors and company secretary (if appointed)
- Statement of capital – number and class of shares
- Shareholder details
- SIC (Standard Industry Classification) code
From 30 June 2016 however the annual return is being replaced by an annual confirmation statement. Most of the information included in the confirmation statement is the same as the annual return although there is a new requirement for companies to keep a new register called “Persons of Significant Control” (PSC).
What is a “person of signficant control” ?
A PSC is anyone in a company who meets one or more of the conditions listed in the legislation being someone who:
- Owns more than 25% of the company’s shares
- Holds more than 25% of the company’s voting rights
- Holds the right to appoint or remove the majority of directors
- Has the right to or actually exercises significant influence or control
- Holds the right to exercise or actually exercises significant control over a trust or company that meets one of the above conditions
The PSCs will for most owner managed business be the directors and/or shareholders so there won’t be much change in what is being disclosed – it’s just a different type of return.
Newly incorporated businesses will also need to supply this information as part of the incorporation process.
The changes comes into effect from 30 June but you will need to keep a note of your PSCs from 6 April 2016.
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