A PSC is an abbreviation for the term ‘Person with Significant Control’. This term or concept was introduced when the Annual Return morphed into the Confirmation Statement. We won’t go into detail about the Confirmation Statement here as we have already blogged about this in the past. What we will clarify is what criteria is used to establish if a person is classed as a PSC.
When considering who is a PSC the underlying principle is that a PSC is a person who the right to exert significant influence or control over the operations and management of a company. This could be a limited company or a limited liability partnership.
What about the criteria?
To establish if a person should be listed as a PSC the following needs to be considered:
1. The person holds more than 25% of shares in the company.
2. The person holds more than 25% of voting rights in the company.
3. The person has a right to appoint and/or dismiss company director’s.
4. The person has a right to exercise, or does exercise, significant influence and control over the company.
5. The person is a trustee of trust and exercises significant influence and control over the trust.
Why is this important?
There is a requirement to list all company PSC’s on the public record and to confirm the accuracy of individuals listed when completing and submitting the Confirmation Statement on an annual basis.
This isn’t optional and all limited companies, for example, need to ensure that they comply with these requirements.
If you need any support or guidance with your company PSC declarations or the Confirmation Statement then feel free to email us at firstname.lastname@example.org.