Introducing our very own first blog – from the Support Team
Here at Company Watch, our support team are mainly responsible for assisting clients with different queries – ranging from the Company Watch system related queries to simple company document filings with Companies House and to more complex & technical accounting queries.
So we visited our query bank in the hope that we might share some knowledge with you on some of our most frequently asked questions. Over the next few months we will be sharing these with you, starting with the Shareholder versus PSC question.
Why show an individual as a Shareholder and not show them as a Person with Significant Control (PSC)?
One of our most commonly asked question is why we are showing an individual as a Shareholder on our system but the same person is not listed as a Person with Significant Control…
As many may already be aware, a new rule came into force in 2016 requiring all UK companies (including many small businesses) to keep a register of their Persons with Significant Control (PSC). These are the people who exert a significant influence or control over a company and are identified as such (PSCs) if they meet any of the following criteria:
– Hold more than 25% of shares in the company
– Hold more than 25% of voting rights in the company
– Has the right to appoint or remove the majority of the board of directors
Well…there is an exception to the above rule… if the shareholder in question is a nominee that is holding the shares on behalf of another person then the nominee is seen as ‘transparent’. This means that the nominee shareholder is only seen as a ‘shareholder’ and not seen as the PSC. In such cases, the ultimate beneficial owner (the person whose shares are being held by the nominee shareholder) is seen as the PSC.
This of course means that business owners who have appointed a nominee shareholder so that they can enjoy anonymity in relation to their ownership of a company will need to make their interest public under the new transparency rules.