UK companies are likely in the near future, to be forced to keep a publically available register of persons with significant control (“PSC”) over the company. Draft legislation is being considered by Parliament at the moment in the Small Business, Enterprise and Employment Bill.
A PSC is someone who has 25% or more of the shares or voting rights in the company, or the right to appoint or remove a majority of the Board of directors, or can otherwise exercise significant influence or control over the company. Where a trust controls a company, individuals with significant influence or control over the trust will also be affected.
The PSC register will contain the name of the individual, their date of birth, country of usual residence, nationality, address and details of the nature of their control of the company. Companies will have a duty to take steps to find out who might have significant control and individuals have a duty to disclose if they have that control.
Any individuals with a significant shareholding in a UK company who have concerns at that information being publically available should consider what action to take to maintain that privacy. That may mean altering the way they hold their investments or business in the UK and the entities they use to do so. There may of course be tax implications in changing a structure and these would need to be considered.