From 6th April 2016 companies are required to keep and maintain a register of people with significant control over the company.
Individuals, who own or control more than 25 per cent of a UK company’s shares or voting rights, or who otherwise exercise significant influence or control over the company or its management must be included on the register. Companies will be required to include the information in its’ annual confirmation statements (currently annual returns) from 30th June 2016. There will also be an online public register.
Failure to maintain such a register is punishable by a fine and/or a prison sentence of up to two years. There is no defence available for an inadvertent breach.
Amongst other things, the register should state whether the percentage of shares or voting rights held by the individual is within the following bands:
1. 25 per cent to 50 per cent;
2. 50 per cent to 75 per cent; or
3. 75 per cent or more.
The company’s register must be open to inspection free of charge and the company must provide copies of the register on payment of a fee of £12.
This should not be relied upon for legal advice. If you would like any further information or advice please email firstname.lastname@example.org.