Follow “committee rules”
Run your company meetings correctly. No hasty ad hoc gatherings called with slips of paper shoved through doors saying, “Let’s meet.” Follow your legal obligations. Here is a template RTM company Annual General meeting calling notice: DRAFT GM Notice
If you wonder if it is up to the job, google RTM AGMs and read real world examples. Continue reading “General Meetings”
Standard advice is to appoint an agent. The logic is, er, logical.
The lease very likely allows collecting for the cost of a managing agent but silent or vague on whether the RTMC could collect for its costs if self-managing. Continue reading “The Managing Agent”
The Model Articles provide a great deal of flexibility and the RTMC may establish it’s own operating rules as long as these keep to the Articles.
Directors take decisions collectively
The Board of Directors acting collectively is the decision-making body.
[Art 12] Any decision of the directors must be either a majority decision at a meeting or a decision taken in accordance with article 13.
[Art 13] A decision of the directors is taken in accordance with article 13 when all eligible directors indicate to each other by any means that they share a common view on a matter. Such a decision may take the form of a resolution in writing, copies of which have been signed by each eligible director or to which each eligible director has otherwise indicated agreement in writing. Continue reading “RTM – Managing the company”
The RTMC is formed before any steps are taken to exercise RTM.
The company is run by its registered members who must be qualifying tenants of a flat (i.e. a leaseholder). The landlord can become a member after acquisition.
Members elect a Board of Directors by Ordinary Resolution (Art. 22), or the Directors may appoint another director (subject to the willing candidate being a member of the company). It follows that the landlord cannot become a Director unless voted so. Continue reading “RTM company management structure”
The landlord (or his agent if any) must hold service charges in a trust account (S42 – Landlord and Tenant Act 1987). At handover to the new RTMC he must pass all unspent sums on the date of acquisition (2002 Act – Section 94(1)). These sums not only include unspent service charges, but also any reserve account or sinking fund. Continue reading “RTM Transfer Issues”
Most leaseholders in my experience find the legal stuff boring. They just want to be ‘saved’ or gain control and a chance to spend the service charge (hopefully better than the previous agents). However, the road to hell is paved with lazy intentions. An RTM company (RTMC) is first and foremost a company and a landlord one at that, and such companies must obey the Companies Act 2006 and their own Articles, and of course the terms of the lease. You can only ‘bend’ a rule if you already know it exists. Continue reading “RTM and Companies Act”
If you cannot join together to buy the freehold, the second best goal in my opinion is to exercise the right to manage. This may prove easier to achieve than trying the ‘blame route’ of applying to a tribunal to appoint a manager. Continue reading “Right To Manage intro”