Greater Manchester Centre for Voluntary Organisation

Register of people with significant control

From 6th April 2016 all companies – including charitable companies, community interest companies and wholly-owned subsidiary trading companies – must have a register of "people with significant control" (PSC register) of individuals and legal entities that have "significant influence or control" over them.

The PSC register is the result of the changes introduced by the Small Business, Enterprise and Employment Act 2015. The aim of the legislation is to ensure that individuals who are ultimate beneficial owners or controllers of a company are identified and details of their interests are made public.

One of the criteria for being a PSC is holding more than 25 per cent of the voting rights in the company. So clearly where there is a membership of four or more (as with most charitable companies), there is no PSC, applying that test. But other criteria may apply (including whether anyone has the right to exercise, or actually exercises “significant influence or control” over the company), and trading subsidiaries will be caught, so all charities will need to consider whether the regime catches them, and if so, to what extent.

The rules are relatively straightforward for most companies, but for some may be complicated. Anthony Collins solicitors has provided a guide (link below).