This week’s blog post is a spotlight on Persons of Significant Control (or PSCs).
*Please note: PSCs only apply to Academy Trusts!*
What are PSCs?
PSCs relate to any individual or group (aka corporate Member) who has the ability to exercise “significant” control, i.e. more than 25% of voting rights.
Where and why do PSCs need to be declared?
Academy Trusts are companies limited by guarantee and therefore, under company law, must declare any PSCs in both their statutory (or governance) books/registers and at Companies House.
How do I know if an individual or group are a PSC and need to be declared?
PSCs relate to Members of Academy Trusts when there are fewer than 4 Members in post (noting the minimum requirement of 3 and suggested best practice of 5) as 3 Members would hold more than 25% voting rights, and to groups such as a sponsor or umbrella trust who have the ability to appoint the majority of Trustees.
So essentially – if you have 4 or more Members, none of which are a corporate Member, then none of these need to be named as PSCs.
If you have just the minimum of 3 Members they will each need to be individually named as PSCs. The same as if you were to have a corporate Member with the ability to appoint the majority of Trustees.
PSCs do not relate to Trustees as they are already declared on Companies House.
What information do I need to declare?
Below is an example of the information required when declaring a PSC:
- Name – name of individual or group
- Correspondance Address – If a person, use the Trust’s registered address
- Governing Law – e.g. UK Companies Act
- Legal Form – e.g. Company Limited by Guarantee
- Place Registered – e.g.UK
- Registration Number – e.g. Company number
- Nature of Control – e.g. right to appoint and remove Trustees
All my best
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