Company Law Update
Confirmation Statements and People with Significant Control
The next time you file your “annual return” at Companies House, you might be in for a surprise. From 30th June 2016 the Annual Return has been replaced by a “Confirmation Statement”.
The requirements for filing a Confirmation Statement are similar to the Annual Return – the process still needs to be carried out at least once a year. Depending on your company’s filing dates, you may not have to crossover to the new system until as late as 29th June 2017. Confirmation Statements may be submitted more than once a year (but only one fee is payable during the year). Annual returns may still be required in some circumstances (for example, to correct errors on previous returns).
A major change that you will notice with the new forms is the requirement to name “People with Significant Control” over the company (PSCs). At its simplest, the aim of this disclosure is to identify the true controlling person/people/bodies of the company. PSCs are categorised in five main ways:-
- those who hold more than 25% shares of the company;
- those who hold more than 25% of the voting rights of the company;
- those who have the right to appoint or remove the majority of directors of the company;
- those who (or at least have the right to) exercise significant influence or control over the company;
- those who have the right to exercise or actually exercise significant control over a trust or company that meets other particular conditions.
Where applicable, PSCs will likely cover more than one of the above categories. For many companies it may be fairly straightforward to identify their PSCs but for others (particularly where there is a trust or more complicated group structure involved), it may be more tricky.
If you need help with your company information, administration or returns, please do not hesitate to contact Aimee Hedley (01842 756139, firstname.lastname@example.org) or Tim Stevenson (01842 756101, email@example.com).