Right To Manage Company

[Snoopy1948]

I live in a newish build block of flats ( built 2010 ), 66 in all, and the last flat was sold earlier this year so we are currently applying for the right to manage. The RTM company has already tentatively been set up by two residents, who are the first two directors of the RTM company.

The RTM application is well advanced and I understand that the current landlord has until the 13th October to lodge his objections to the RTM. This may have been complicated by the fact that the freehold has just been bought by an investment company and we are unsure if the new freeholder can lodge further objections to the RTM.

The two current directors are saying that we need six directors for the RTM and they have asked me to become one.

Two questions please ... (1) Is there a formula for the number of directors required and (2) are there any cautions I should be aware of ( such as personal liabilities ) if I agree to become one? Apart from it being a thankless task of course!

[Kati]

Re: Right To Manage Company

Have you had a read of this Snoopy - http://www.lease-advice.org/advice-g...ht-to-manage/# ?? It might give you a starting point at least xx

[des8]

Re: Right To Manage Company

The law does not distinguish between directors of RTM companies or major corporations1
They can be held personally liable for their errors, omissions and acts.
So if you take the position ensure that the RTM company effect DandO (Directors and Officers) Liability insurance for your protection.

[Diana M]

Re: Right To Manage Company

The only problem I foresee is that having an even number (6) not an odd number (5 or 7) of directors there's the potential to have a hung jury when it comes to decision making unless the decision requires a unanimous vote.

In my experience it's not the number of directors that matters, but the quality and experience of the individuals. You'd pass both those tests

An equal balance of 'owner occupiers' and 'investor landlords' on the board is a good idea since both have different agendas. Those who dwell in the building always want more work done than the landlords who will fight to only carry out work strictly in line with the terms of the lease (which is not an unreasonable approach).

On a personal level I would want an input into how my money is being spent. The lessees pay service charges and the RTM will decide how the money is used. If you become a Director you will have a voice on where your money goes.

Di

[Crazy council]

Re: Right To Manage Company

Its worth doing this, but club together and get a solicitor/accountant

Insurances ( i think mandatory ), cover most problems as long as the actual management of the lease hasn't fubar general terms. I also thing the terms drawn up cover directors against legal action and other things usually ( but again, lease terms are usually unique to the building )
Its definitely worth doing ( some leases pay for the time for directors ), just at least so you have control of charges and actions around your building.

Ie, like to block attempts by whoever buying the lease from just hammering you with charges and fees