Change in Company Law from 6 April 2016 affecting you and your company

Are you aware that changes introduced with effect from 6 April 2016 will affect you and your company?

From 6 April 2016, each and every company (and LLP) is required to have, and keep available for public inspection, a register of people (or entities) with “significant control” over the company (PSC Register).

From 30 June 2016 you will be required to provide this information to Companies House in the replacement for the current annual return, to be known as a “Confirmation Statement”.

What does my company/LLP need to do?

1. Have a PSC Register and keep up-to-date information on registrable persons and relevant legal entities with “significant control” over the company;
2. Write to those shareholders that may be persons/entities with “significant control” in your company;
3. Keep the PSC Register available for public inspection and provide copies when requested; and
4. From 30 June 2016 provide information from the PSC Register as part of a new annual “Confirmation Statement” to Companies House, which will replace the current annual return.

Who must be included in the PSC Register?

The primary obligation is to record details of all people/entities with “significant control” over the company. A person with “significant control” is a person/entity who directly or indirectly:

1. holds more than 25% of the company’s shares; or
2. holds more than 25% of the company’s voting rights; or
3. has the right to appoint or remove a majority of the company’s directors; or
4. has the right to exercise, or does exercise, significant influence or control over the company; or
5. has the right to exercise, or does exercise, significant influence or control over the activities of a trust, and that trust meets one or more of the above four conditions.