What is new?
The implementation of Stage 4 of the Small Business Enterprise and Employment Act 2015 will impose important new obligations on company directors and shareholders.
Since April 2016 companies have had a duty to keep a register of People with Significant Control (the PSC Register), typically identifying the following:
- Those holding (directly or indirectly) 25% or more of the shares / voting rights of a company
- Those who can appoint / remove a majority of the directors
- Those who have the right to exercise significant influence or control
- Any person who controls a trust that falls within the above.
In addition the PSC Register must also identify and include relevant and registrable companies thereby allowing people to track down those ultimately in charge via those companies own PSC registers.
On the 30th June 2016, section.92 – 98 of the Small Business Enterprise and Employment Act 2015 will be coming into force, replacing the Annual Return with the new “confirmation statement” which will now be accompanied by the company’s PSC register making all the above details easily available to the public.
Due to the imposition of criminal sanctions for failure to either supply or update the PSC register, including any information as to the reasonable steps taken by the company, it is very important that those with the responsibility to do so are aware of the new obligations under the Act (including the power to issue sanctions to those who fail to supply information to the company).
How we can help?
We undertake a wide range of work assisting company directors and shareholders including director disqualification proceedings. We are particularly experienced in representing company directors accused of failing in one of more of their legal duties. This often involves an investigation or prosecution involving the Insolvency Service, Companies House or HMRC.
A small sample of our work in this area can be seen by following the link below:
Should you require any further information on this section of the Act or any matters relating to Director’s duties and obligation please do not hesitate to contact Dean Phillips of Kangs Solicitors.