What Is the Difference Between Directors, Shareholders and a Person With Significant Control (PSC)?

These roles represent different relationships with the company:

• Directors are responsible for managing the company and ensuring it complies with its legal, financial, and reporting obligations.
• Shareholders are the owners of the company. They hold shares, may receive dividends from profits, and typically have voting rights on key decisions, including appointing or removing directors.
• A Person With Significant Control (PSC) is an individual or relevant legal entity that ultimately owns or controls the company.

Under UK regulations, a PSC is someone who meets one or more of the following conditions:

• Holds more than 25% of the company’s shares;
• Holds more than 25% of the voting rights;
• Has the right to appoint or remove a majority of the board of directors;
• Otherwise exercises significant influence or control over the company; or
• Exercises control over a trust or firm that meets any of the above conditions.

Information about PSCs must be reported to Companies House as part of the company’s transparency requirements.