From the last Crab Insight I understand that from 6 April 2016 there is a requirement for companies to keep a register of people who have significant control over the company?

  1. Does that mean registered companies and therefore exclude Sole Traders, even those with employees?

  2. There’s also a reference to trusts, I would expect any trustees to be people with significant control – is that correct?

  3. Would senior managers within trusts also be deemed as having significant control?

This question refers to the Small Business, Enterprise and Employment Act 2015 and the amendments it makes to the Companies Act 2006.

In answer to part 1 a company means a company formed and registered under the Companies Act so would exclude sole traders.

In answer to part 2 in terms of trustees within a trust, it very much depends on their role and the extent of their control as defined under the Act. The Department for Business, Innovation & Skills has published draft statutory guidance on determining whether a person is a person with significant control. Essentially if a person has significant control of the activities of a trust, they have the power to direct its policies and activities and that influence enables them to ensure that the trust adopts those policies or activities that they desire.

In answer to part 3 from the draft guidance and regulations it would seem that senior managers would only be caught if they were deemed to be trustees.

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