A Person of Significant Control (PSC) is an individual or entity that holds significant influence or control over a company. Identifying PSCs is a legal requirement in the UK, and companies must maintain a register of their PSCs. A PSC is defined as someone who meets one or more of the following criteria:
- Ownership of Shares: They hold more than 25% of the company’s shares.
- Voting Rights: They control more than 25% of the company’s voting rights.
- Appointment of Directors: They have the right to appoint or remove the majority of the company’s board of directors.
In some cases, a PSC may exert significant influence or control over the company through other means. This could include having a significant say in how the company is run, even if they don't meet the above thresholds.
Why is Identifying a PSC Important?
The PSC regime was introduced to increase transparency around who controls companies in the UK. It’s essential for preventing illegal activities such as money laundering and ensuring that companies are accountable.
What Should Companies Do?
Every company in the UK is required to identify its PSCs, record them in a PSC register, and report this information to Companies House. This register must be kept up to date and made available for public inspection.
Failing to comply with the PSC regulations can result in penalties for both the company and the individuals involved.
Common Scenarios
- Multiple PSCs: A company might have more than one PSC if several individuals each hold more than 25% of the shares or voting rights.
- Indirect Control: Sometimes, control is exercised indirectly through other companies or trusts, making it necessary to trace the control back to the individual.
Further Guidance
To find a company's PSC/s, please navigate to the 'PSCs' tab within one of our business reports.