A business can change, but the business of identifying who is officially in control of it remains of central importance.
For a number of years, businesses have had to familiarise themselves with the requirements of PSC legislation – namely, to have a register that identifies who owns or controls a company, known as Persons with Significant Control (PSCs).
What makes this area so complex is that control not only refers to the legal shareholders of a company, but also to the beneficiaries – and businesses and companies change and evolve over time. For example, a business may transfer shares from one shareholder to another, or bring in a new shareholder with a fresh set of shares; or the rights attached to classes of shares may be amended when company articles are updated. In other circumstances, the company may simply be carrying out a general reorganisation for a more effective business structure.
All of these scenarios, and others, can affect who should be on the PSC register at any given time, and it’s vital to be aware of your ongoing obligation to keep the PSC register accurate and up to date. Failure to provide correct information on the register is a criminal offence, and could result in a fine and even a prison sentence.
Moore Barlow’s PSC specialist, Polly Cross, can review and advise on your company’s position in order to reassure you that your company is compliant, so do not hesitate to get in touch.