
The Register of People with Significant Control (PSC) Regulations, which are being implemented as part of the Small Business, Enterprise and Employment Bill, will take effect on 6 April 2016.
From this date, all businesses incorporated in the UK will be required to keep a register of anyone who has a significant shareholding and/or operating interest. This is defined as anyone who owns more than 25 per cent of the firm?s shares or 25 per cent of its voting rights; has the right to appoint or remove senior level staff or who exercises or has the right to exercise control over the business and its activities. In addition to maintaining the PSC register, the board will need to demonstrate that “reasonable steps” have been taken to identify those with significant control and to file information at Companies House about them as part of the firm?s annual confirmation statement. This information will effectively become a matter of public record and, in addition to specifying the extent of each individual?s interest in the business, their name, address, date of birth and nationality will be given. And according to Roy Botterill, corporate law partner at Shakespeare Martineau, the PSC register represents yet another burden for private businesses, “the vast majority of which have been operating entirely legitimately whilst enjoying the privacy that comes from running a business without the backing of public shareholders.” Read more about transparency:- Four ways to increase transparency and productivity in the workplace
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By Shan? Schutte
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