What are PSC’s?

A PSC is:

1. An individual who holds more than 25% of the shares; OR

2. An individual who holds more than 25% of the voting rights; OR

3. An individual who has the right to appoint or remove the majority of the board of directors of the company; OR

4. An individual who has the right to exercise, or exercises significant influence or control over the company; OR

5. An individual who has the right to exercise, or exercises significant influence or control over a trust/firm that would satisfy one of the first 4 conditions if it were an individual

Significant influence:

Where an individual can ensure that the company generally adopts the activities they desire

Significant control:

Where an individual can direct the activities of the company

Examples which may constitute significant control or influence include:

• Where a person has absolute decision rights over decisions related to the running of the business e.g. changing the nature of the company’s business, making additional borrowing, etc

• Where a person has absolute veto rights over the decisions related to the running of the business

Full guidance can be found here:

www.gov.uk/government/uploads/system/uploads/attachment_data/file/523120/PSC_statutory_guidance_companies.pdf