People with significant control (Procedure to incorporate)- FS

Question 1

What is the purpose of identifying persons with significant control (PSCs) on Form IN01 during company incorporation?

Answer 1

Identifying PSCs on Form IN01 ensures transparency about who holds substantial influence over the company. It allows Companies House to maintain public records, enhancing investor awareness and corporate accountability.

Question 2

What is the threshold shareholding or voting rights that defines a person with significant control (PSC)?

Answer 2

A person is deemed to have significant control if they hold more than 25% of the shares or voting rights, or if they have the right to appoint or remove a majority of the board of directors.

Question 3

Can a company be considered a person with significant control (PSC), and under what condition?

Answer 3

Yes, a company can be a PSC if it invests capital in exchange for shares and meets the threshold of holding more than 25% of the shares or voting rights, or exercises equivalent control.

Question 4

What are the three categories of shareholding thresholds on Form IN01 used to describe levels of significant control?

Answer 4

The three thresholds are:
1. More than 25% but not more than 50%

2. More than 50% but less than 75%
3. 75% or more of shares or voting rights.

Question 5

What key personal details of persons with significant control must be disclosed on Form IN01?

Answer 5

The name, country of residence, and nationality of each person with significant control must be disclosed on Form IN01.

Question 6

Why do the levels of significant control matter in relation to shareholder resolutions?

Answer 6

The levels of control are important because they influence the ability to pass ordinary or special shareholder resolutions, which are necessary for authorising company decisions.

Question 7

What is the function of the Statement of Compliance in Part 9 of Form IN01?

Answer 7

The Statement of Compliance confirms that the applicant has met all legal requirements under the Companies Act for the incorporation of a company.

Question 8

Why is a person holding exactly 25% of shares or voting rights not considered to have significant control?

Answer 8

Because the statutory threshold for significant control is more than 25%; exactly 25% does not meet the legal requirement for PSC status.