On 15 July, Dr Vince Cable, Secretary of State for Business, Innovation and Skills, announced the launch of the Transparency & Trust discussion paper.
The full document is called “Transparency and Trust: enhancing the transparency of UK company ownership and increasing trust in UK business” and is available online.
This document, whilst being targeted at criminals and international money launderers and terrorists, will impact on every UK private company and particularly on overseas companies looking to set up trading subsidiaries in the UK.
The Executive Summary runs to over 10 pages but I can cover it in a few lines:
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- Every Company & LLP will be required to maintain a Register of Beneficial Owners (those who control 25% or more of a company). The only debate is on who will be entitled to access this Register.
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- Corporate directors are likely to be outlawed.
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- Nominee directors will have to disclose publicly the full details of their Instructor or Principal.
- New Bearer Shares are to be banned and existing shares to be converted to Ordinary Shares.
Whilst this is a consultation document there should be no doubt legislation will follow.
The information in this article was correct at the date it was first published.
However it is of a generic nature and cannot constitute advice. Specific advice should be sought before any action taken.
If you would like to discuss how this applies to you, we would be delighted to talk to you. Please make contact with the author on the details shown below.
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