Cable to clean up companies


The Secretary of State for Business, Innovation and Skills Vince Cable has his sights set on what he calls 'the darker side of capitalism'. He has announced his intention to create a new public register of company ownership that will reveal the ultimate owners of UK companies, thus making it harder for firms to evade tax or funnel corrupt funds.

Companies will be forced to declare who their ultimate owners are. Shareholders with more than a 25 percent stake in a UK-registered company will have to supply personal details such as their name and nationality to Companies House, he says. Companies will be required to supply these details when starting up, and update them at least once every 12 months. This will include details such as the name, date of birth and nationality. The government will also abolish so-called bearer shares that allow an individual or group anonymously to own a company and to transfer control without that transfer being traceable.

Ministers argue that the rules changes will help the authorities clamp down on tax evaders, money launderers, and terrorists who can currently use the law to evade the reach of the government. “For consumers, investors and the wider public to really trust a company they need to know who is really in charge,” said Mr Cable. “This is why I'm making sure we take tough action tackling the darker side of capitalism and the smoke and mirrors which have existed for too long. No longer will UK companies be able to use complex structures and trails of paperwork to hide information and keep the public in the dark.''