From 6th April 2016 UK companies need to keep a register of Persons with Significant Control (PSCs) – and this applies to charities too. Broadly speaking, a PSC is someone who holds more than 25% of the shares or voting rights. So, for example, a charitable company with three trustees, in which the only guarantee members of the company are the trustees, must inclue all three trustees on the PSC register. If it has four trustees who are guarantee members, then none need be included on the register.
However, if a person has 25% or less of the formal voting rights, but nevertheless exercises “significant influence or control”, then they should be included on the register. This may be the case, for example, with a charismatic founder.
Non-companies are excluded from the regime, including:
- registered societies
- charitable incorporated organisations
- unincorporated charities
- charities incorporated by royal charter
What you need to do:
- identify your PSCs
- include them on the register (in practice a piece of paper in your statutory books)
- include them on your Companies House Annual return next time you fill it in