The SBEE Act 2015May 21, 2015
The Small Business, Enterprise and Employment Act 2015 went into effect in the UK on March 26th of 2015. This act means big changes for corporations in the UK. Namely in the areas of transparency and accountability. The biggest change will be in the mandate for corporations to maintain information in a register that will be widely available to the public. Here, we will tell you more about what this register must include and what will happen if a business does not comply.
Persons with significant control are defined in this act as people with voting rights, who own more than 1/4th of the shares of a company, control management within the company, or have control over the company. Trustees or those over a trust must also be listed in this registry. Parent companies must maintain this information. Either that or individual companies themselves. Companies who are traded on the stock exchange in London or the AIM will not have to maintain this information. If companies do not comply with requirements by April 2016, there will be certain consequences.
Here are the things that must be included in the registry for each person with significant control:
* Residential and service address;
* Full name;
* Country/state where residing;
* Details on beneficial interest, including when it was acquired and how it is held.
Fines or imprisonment might be faced by companies that do not make every effort to gather this information through notices to persons with significant control. Any person who receives a notice asking for this information must comply. If not, then the company may have the right to suspend the shares controlled by the person.
The only real change, here, is that this information will be widely available to the public. Banks and businesses in the EU have already been required to collect this information. Eventually, this sort of regulation will become standard across the EU. All UK companies and firms must start gathering this information, even those in a group structure. Any companies in the EU can expect to have to do the same in the future. Most firms will already have someone within their ranks who knows how to file the appropriate paperwork with Companies House. Well before the deadline for submitting this information, your company should put a plan into action to gather this information.