ClaretPete001 wrote: ↑Mon Sep 12, 2022 1:14 pm
I realise that one or two want to get back to discussing Mike Ashley getting a clogging on a saturday :tehee :rofl :lol etc., however, just for my knowledge does anyone know if there is a difference between the use of "significant influence" and "significant control" in company law? I know there is guidance to suggest there is but I don't know if that guidance is widely followed or accepted in practice
Significant influence or control - terminology
1.21. “Significant influence” and “control” are alternatives.
1.22. Where a person that can direct the activities of a company, trust or firm, this would
be indicative of “control”.
1.23. Where a person can ensure that a company, trust or firm generally adopts the
activities which they desire, this would be indicative of “significant influence”.
There's also a whole section on People with Significant Control (PSC) on
www.gov.uk/guidance/people-with-signifi ... ntrol-pscs
Extracts:
How to identify and record the people who own or control your company.
A person with significant control (PSC) is someone who owns or controls your company. They’re sometimes called ‘beneficial owners’.
You must identify your PSC and tell us who they are. This might be you, or someone associated with your company. A company can have one or more PSCs.
You must record their details on your company’s PSC register, and you’ll need to include this information when you set up (incorporate) your company.
If you cannot identify your PSC, or do not have one, you need to tell us.
Identifying your PSC
A PSC must meet one or more conditions known as the ‘nature of control’. Your register must show which conditions are met.
Most PSCs are those who hold:
more than 25% of shares in the company
more than 25% of voting rights in the company
the right to appoint or remove the majority of the board of directors
You should check your company’s register of members for information on shareholders and voting rights.
Your company’s constitution and articles of association may also contain information on voting and other rights associated with ownership of shares in the company.
Other significant influence or control
Your PSC might influence or control your company through other means. This could be directly, or on behalf of someone else.
For example, someone may influence or control the actions of directors or shareholders.
This condition will only apply in limited circumstances. The full PSC guidance has more information on the meaning of ‘significant influence or control’.
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To answer your questions above. Yes, this is company law. Yes, this is followed in practice.