How to Change the Person of Significant Control (PSC) Details

When managing a company, keeping your records accurate and up to date is essential. One key area that requires attention is the details of the Person of Significant Control (PSC). The PSC is someone who holds significant influence or control over a company, such as a major shareholder or someone with voting rights. Changing PSC details can be necessary for various reasons, including changes in ownership, control, or personal information. This guide explains how to update PSC details clearly and efficiently.

Understanding the Person of Significant Control

A Person of Significant Control is defined by specific criteria, such as:

• Holding more than 25% of shares or voting rights in the company

• Having the right to appoint or remove the majority of the board of directors

• Exercising significant influence or control over the company’s decisions

  
  

Companies must keep a register of their PSCs and file this information with the relevant authorities, such as Companies House in the UK. This transparency helps prevent fraud and ensures accountability.

When to Change PSC Details

You need to update PSC details when:

• A PSC’s personal information changes (name, address, date of birth)

• The PSC’s shareholding or voting rights change

• A new PSC emerges due to changes in ownership or control

• A PSC ceases to have significant control

  
  

Failing to update PSC details on time can lead to penalties and legal complications. The law usually requires companies to update their PSC register within 14 days of any change and notify the authorities within another 14 days.

Steps to Change PSC Details

Follow these steps to update PSC details correctly:

1. Review the Current PSC Register

Start by checking your company’s existing PSC register. Confirm which details need updating or if a new PSC must be added. This helps avoid errors and ensures all changes are necessary.

2. Gather Accurate Information

Collect the updated information for the PSC. This may include:

• Full name

• Date of birth

• Nationality

• Service address

• Usual residential address (kept confidential)

• Nature of control (shares, voting rights, etc.)

  
  

Make sure the information is accurate and verified to avoid delays.

3. Update the Company’s PSC Register

Make the necessary changes in your company’s internal PSC register. This document must reflect the most current information.

4. Notify the Relevant Authority

In the UK, you must file the updated PSC information with Companies House using the appropriate form (usually form PSC01, PSC02, PSC03, or PSC04 depending on the change). This can be done online or by post.

• PSC01: To add a new PSC

• PSC02: To update details of an existing PSC

• PSC03: To notify that a PSC has ceased to have significant control

• PSC04: To notify that a PSC is no longer registrable

  
  

Filing fees may apply, and the deadline is typically 14 days from the change.

5. Confirm the Update

After submitting the changes, check the confirmation from the authority. Keep a copy of the updated register and filing receipt for your records.

Practical Example

Imagine a company where a shareholder who owned 30% of shares sells part of their stake, reducing their holding to 20%. This change means they no longer meet the PSC threshold. The company must:

• Update the PSC register to reflect the reduced shareholding

• File form PSC03 to notify that this person no longer has significant control

• Possibly add a new PSC if another shareholder’s stake increases above 25%

  
  

This process ensures the company’s records remain accurate and compliant.

Tips for Smooth PSC Updates

• Keep records organized: Maintain a clear and updated PSC register to avoid confusion.

• Act promptly: Update details as soon as changes occur to meet legal deadlines.

• Verify information: Double-check all PSC details before submitting to prevent errors.

• Use online filing: Online submissions are faster and provide immediate confirmation.

• Seek professional advice: If unsure, consult a company secretary or legal advisor.

  
  

What Happens If You Don’t Update PSC Details?

Failing to update PSC details can lead to:

• Fines and penalties imposed on the company and its officers

• Legal action for non-compliance

• Damage to company reputation and trust

• Difficulties in securing finance or contracts

  
  

Keeping PSC information current protects your company and ensures transparency.