The SBEEA (Part I: People with Significant Control) Against the backdrop of an increasing push for greater transparency of company ownership, the Small Business Enterprise and Employment Act 2015 ("SBEEA") took effect on 6 April 2016 which implements the beneficial disclosure requirements of the EU Fourth Money Laundering Directive. The SBEEA imposes a requirement on UK companies and LLPs to maintain a register of significant beneficial ownership information and creates a central registry for such information to be publicly accessible via Companies House. Who do the rules affect? The new rules will apply to most UK companies and LLPs, with some minor exceptions (e.g. LSE main market and AIM companies). What is the upshot of these rules? Companies and LLPs must maintain a Person with Significant Control (‘PSC’) register and from June 2016, entities are now required to include the PSC information in their Confirmation Statement (to replace the Annual Return) at Companies House. Who is a 'person with significant control'? A PSC will meet at least one of the following conditions:
- Directly/indirectly hold more than 25% share capital;
- Director/indirectly control more than 25% votes at general meetings;
- Directly/indirectly control the appointment/removal of a majority of directors;
- Actually exercise/have the right to exercise significant influence or control; or
- Actually exercise/have the right to exercise significant influence or control over any trust or company that satisfies one of conditions 1 – 4 above.