If a company or LLP does not know who its PSC’s are then it must take reasonable steps to find out. This will typical involve sending notices to any know persons or advisors that the company or LLP feels may be able to supply the information. The notices must give no more than one month to reply. PSCs themselves have an obligation to notify the company within one month of becoming a PSC. They commit an offence if they fail to notify or respond to a notice from the company. If the PSC information is still unknown after notices have been issued a company or LLP can consider placing restrictions on the PSC.
Applying restrictions is a significant step which can only be taken if the steps described in the legislation have been properly taken. Your company or LLP is not required by law to impose restrictions, but you must seriously consider doing so as part of the legal requirement for you to take reasonable steps. If your company is in this situation and chooses not to impose restrictions, you should be able to justify your decision.
We recommend any company or LLP considering restrictions on a possible PSC should review the full legislation carefully and seek advice from a specialist company lawyer before implementing any restrictions.
A company or LLP that does not know who its PSC’s are must record this in its PSC register and at Companies House using one of the following statements –
- PSC exists but have not been identified
- PSC details are not confirmed
- PSC contacted but no response
- Restrictions notice issued to PSC