What does it mean there is no persons of significant control?

When a company states there are no Persons with Significant Control (PSC), this is an unusual situation that requires careful consideration.

What PSC Means: A Person with Significant Control is someone who:

• Holds more than 25% of shares
• Holds more than 25% of voting rights
• Has the right to appoint or remove directors
• Has significant influence or control
• Is part of a trust or firm meeting these conditions

Why 'No PSC' is Unusual: Most companies have at least one PSC because:

• In small companies, founders typically own more than 25%
• Someone usually has significant control
• Directors often qualify as PSCs

Legitimate Reasons for No PSC:

1. Widely Held Companies:
   • No shareholder owns more than 25%
   • Common in larger companies with dispersed ownership
   • Listed companies may have thousands of small shareholders
2. Equal Partnerships:
   • Five or more equal shareholders (each with 20% or less)
   • No individual has decisive control
   • Decisions made collectively
3. Complex Structures:
   • Ownership through multiple entities
   • Each below the 25% threshold
   • No single controlling party

Potential Concerns:

1. Non-Compliance:
   • Company hasn't properly identified PSCs
   • Failure to understand PSC requirements
   • Administrative oversight
2. Deliberate Concealment:
   • Attempting to hide true ownership
   • Using complex structures to avoid disclosure
   • Potential money laundering risk
3. Investigation Status:
   • Company still investigating PSCs
   • Awaiting confirmation from potential PSCs
   • Temporary status

What to Check:

• Review the PSC statement date
• Check if marked as 'PSC requirements not met'
• Look at shareholding structure
• Consider company size and type
• Check filing history for changes

Red Flags:

• Long-standing 'no PSC' status without explanation
• Complex ownership with no PSCs
• Recent changes before significant transactions
• Inconsistent with company size/type

Due Diligence: If dealing with a 'no PSC' company:

• Request explanation from the company
• Check if PSC register is up to date
• Consider additional ownership verification
• Be cautious if transparency is important
• Seek professional advice for significant transactions