Companies House have issued guidance on how to identify a company’s PSC. A PSC is someone who owns or controls a company. Generally, a person who owns more than 25% of the company’s shares or more than 25% of the voting rights.
However, a person may exert control or influence the company by other means. Such as when an individual has the right to appoint or remove the majority of the board of directors defined in the company constitution or articles of association or when the shares are owned by a trust or firm.
Other situations where a person has the right to exercise control are not so easily defined but might include where the person has an absolute right to:
- Adopt or amend the company’s business plan
- Change the nature of the company’s business
- Make any additional borrowing from lenders
- Appoint or remove the CEO
- Establish or amend any profit-sharing, bonus or other incentive scheme of any nature for directors or employees
- Grant options under a share option or other share based incentive scheme.
Company statutory guidance for the PSC register A record of all PSC’s must be held by the company and declared to Companies House. The following details of the individual must be provided:
- date of birth
- country, state or part of the UK where the PSC usually lives
- service address
- usual residential address
- date they became a PSC