Corporate governance and directors’ duties in the UK
DAC Beachcroft’s London Corporate team and the Governance Advisory Practice have produced the UK chapter of the multi-jurisdictional guide to Corporate Governance and Directors’ Duties for the…
Published 17 March 2016
From 6 April 2016, the vast majority of companies incorporated in the UK will have to maintain a register of persons with "significant control" over them (a "PSC Register"). The expectation is that each such company will have a PSC Register in place on 6 April with one of the prescribed statements in it. Failure to do so will be a criminal offence and may result in a fine/or a prison sentence of up to 2 years. Similar rules apply to LLPs. This is our third alert about the new regime.
The Government has just published its guidance for people with significant control ("PSCs"). A link to the guidance can be found here.
This guidance is quite lengthy (47 pages), but helpful to anyone grappling with the new regime and its practical implications for persons with significant control and directors of registrable legal entities.
In particular, the guidance explains what information PSCs must provide to UK companies and how to respond to notices from them.
Companies and LLPs should carefully review the guidance now available and consider who are the person(s) with "significant control" over them. From 6 April 2016, all UK companies will need to have appropriate entries in their PSC Registers. Companies with complicated ownership structures, for example involving overseas shareholders, will be particularly affected.