Harrogate accountancy firm and landed estates specialist Saffery Champness is advising farming and rural businesses that they must comply with a new reporting requirement that came into force on 6 April 2016 requiring a register to be kept listing those people who have significant control over a company or LLP.
People with significant control are individuals who meet one or more conditions contained in Government-issued guidance, among these being: directly or indirectly holding more than 25 per cent of the shares, or 25 per cent of the voting rights; directly or indirectly having the right to appoint or remove a majority of directors; or simply having the right to exercise, or actually exercising, significant influence or control.
Alison Robinson, Partner with UK top 20 Chartered Accountants Saffery Champness, and a member of the firm’s Landed Estates and Rural Business Group, says:
This may seem relatively simple, but requires some thinking about how a business is run and who actually runs it.
For example, for a smaller family-run company, its founder may have a small shareholding but still exercise considerable influence over other shareholders and how they vote.
All information needs to be confirmed and entered onto the company’s PSC register for filing at Companies House as part of the Confirmation Statement that replaces the Annual Return with effect from 30 June 2016. Details on the PSC register will then be available on public record.
Alison Robinson said:
Nominee companies and companies owned by trusts also need to make sure they submit the required information.
Non-compliance with the PSC rules is a criminal matter, and non-submission of information is likely to incur a penalty. As ever, ignorance is never an allowable excuse.