In order to promote good governance, it seems that the PSC list should mirror the approach required by a minimum Trustee or Director number i.e. a charitable company should either have no persons with significant control, or have at least three who share equal rights. It is my understanding that a Director who may have most of the voting rights according to the PSC list could, in theory, out-vote the other Directors which to some extent nullifies good governance promoted through the the requirement to have a minimum of three Directors. Sometimes this seems contradictory to what is in the organisation's governing document, but more often voting rights are not so explicitly addressed within it.
However, I would like to know if this is an accurate understanding and also the approach of other funders.
I have two questions for funders:
1) What are your requirements with regards to the Persons with Significant Control list when conducting due diligence?
2) What are the reasons that a charitable company would choose to have a Person with Significant Control?
Thank you for any help!
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