Person of Significant Control

What to do here.

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I look after a client that is the spin off of a larger company. The wife is director and shareholder of smaller company. The husband owns a larger company but clearly has a lot of input and control over smaller company ran by his wife.

I dont act for the husband. I need to do the confirmation statement and PSC register for me he clearly needs to go on as PSC. He refuses to and is actually quite animated about it.

To  the outside world, bank and customers they see him as the main man behind both companies so unsure what his objections to being listed as the PSC but he point blank refuses to go.

What do you do if he refuses to go on?

 

Replies (8)

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By johngroganjga
19th Oct 2016 10:41

Does the wife confirm that she does what he tells her? That by the way is not the same as taking advice from him, or discussing the company's affairs with him.

Thanks (1)
By petersaxton
19th Oct 2016 10:54

What has it got to do with him? If he's a PSC don't you have to register him whether he likes it or not?

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Man of Kent
By Kent accountant
19th Oct 2016 10:54

Hmmm tricky one eh?

Sound like he's in breech of section 790D of the Companies Act and if he doesn't comply he could face up to 2 years in prison.

If you mention that to him he may change his mind.

You really need to understand what his objections are.

if he believes he doesn't exercise control over the business, then get him to confirm this in writing.

He sounds like a grade A [***].

Thanks (2)
By Tim Vane
19th Oct 2016 11:11

The wife is the director. It is her responsibility to determine what goes on the PSC, not yours. Although of course she will be expecting guidance. Put it to her (in writing) that in your opinion the husband should be on the PSC, and that not to include him could result in HER being liable for a breach of the regulations.

Then let them spat it out among themselves. The irony being that if the husband gets his way and does not go on the PSC, it proves that he exercises signficant control, and that he should be on it.

If it were my client and the husband were not put on the PSC for this reason, then I would resign and explain why (in writing).

But ultimately it is the wife's decision, as she is the officer of the company.

Thanks (3)
Glenn Martin
By Glenn Martin
19th Oct 2016 11:15

Hi Kent

He is an [***], his sole driver for resisting this is he basically does not like been told what to do by other people, and resists compliance at every corner.

He appeals parking tickets, and is forever in court over petty disputes, and seems to have his MP on speed dial for daily gripes around everything.
I cannot wait until he finds out about MTD.

He clearly exerts control, the wife is little more than the bookkeeper for the business this was set up for "to give her something to do" as she probably would not want to work with him full time.

I personally think that PSC is a total waste of time, as rogue directors will still flaunt the system and who would even have time and resource to Police all of this.

I will tell him to complete it himself and give him the information around his obligations.

Thanks (2)
Replying to Glennzy:
Anyone Without A Sense Of Humour Is At The Mercy Of Everyone Else
By WellHeeled
25th Oct 2016 16:13

I had a neighbour like that once. He never really set his red-dot on me, but I watched him cause much misery to anyone unfortunate to have dealings with him.
His wife seemed so much more happy after he died.
She learned to swim, got a nose piercing, had a nice social life and had a spring in her step.
(I didn't kill him in a generous neighbourly move btw).

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By Swimmingagainstthe Tide
21st Oct 2016 14:35

Ask the wife if she would like to do her own Company Secretarial work.

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