Michael Cantwell, a partner in the corporate department of hlw Keeble Hawson, has urged Yorkshire business owners to look into what impact the new Persons with Significant Control (PSC) register will have on their companies.
Major new transparency rules will be imposed on nearly all UK companies from this April to combat tax evasion, money laundering and financing terrorism in the form of the PSC register.
Introduced by The Small Business, Enterprise and Employment Act 2015, the register requires business owners to keep a register of all people and companies that have a significant control over them. This includes those holding more than 25% of the company’s shares or voting rights – along with anyone who has the authority to appoint or remove a majority of the board of directors.
“The true impact of the PSC Register remains to be seen – and many companies will be affected in different ways. There is still time to prepare by finding out precisely what obligations you will have, your powers of enforcement – and how you must demonstrate that you are complying from April,” said Cantwell.
He added that the legislation could hit some firms badly in other ways – for example where PSCs have notoriety or if they work with other, controversial enterprises and customers shun them as a result.
