RTM Company set-up and acquiring and holding leaseholder details

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    RTM Company set-up and acquiring and holding leaseholder details

    Hi all,

    I am a leaseholder and resident in a large development of 385 flats, which consists of 2 buildings. Each building has their own RTM company. The RTM company I am a leaseholder of has one director. The other building's RTM Company has three directors. Both buildings are managed by the same external property management company. Whilst the service charge budgets are kept separate, the buildings are managed together (one on-site maintenance team, directors' meetings are held together and AGMs held together). Decisions and works and all operations are done jointly.

    At the moment, the directors of the RTM Companies have no way of independently communicating with the leaseholders they represent. The RTM Companies hold no contact details for the leaseholders. The management agent obviously has contact details of all leaseholders as it collects the service charge and sends out email and postal communications from time to time.

    The management agent is a long way off perfect, but is generally pretty good. However it would seem to make sense for the RTM Companies to have the ability to communicate with its members away from the management agent it employs. We have asked the management agent for the leaseholder details, but they have refused.

    A few queries we have:

    - Is it normal for a RTM Company to hold (or not to hold) a list of contact details of all leaseholders?

    - Can a RTM Company demand the contact details of the leaseholders it represents from the management agent?

    - We're aware of upcoming changes to the General Data Protection Regulation (May 25th 2018) so we want to stay on the right side of regulations, but also retain and maintain control of our development.

    At the moment the management agent arranges and chairs the AGMs and directors meetings and generally calls all the shots, with little control in the hands of the two RTM Companies. It would be great to know whether this is standard practice and/or what is an example of best practice. We have lots of interested leaseholders who are keen to make the development as good as it can be. But because it's so large and the current situation, it's hard to communicate and get organised!

    Thanks in advance..

    #2
    It is a criminal offence for any company not to hold the contact details of its members!

    I'm not sure that RTM's have any rights to the details of leaseholders who are not members, beyond looking them up on the Land Registry, at £3 a leaseholder.

    Of course the RTM can demand information from its managing agent. It is the freeholder, not the managing agent, that might have exclusive access. Agents are agents; they do their principal's bidding.

    The list of members and their service addresses is exempt as it s register required by statute.

    It seems to be fairly normal for managing agents to hijack management companies, but is is only legal to teh extent that they are authorised to do so by the directors, and the directors are, in turn, chosen by the members and can be removed by the members. RTMs allow directors who are not members, so the members could,. validly, have appointed the managing agent and'or people associated with it as directors.

    If they no longer want that, they 5% of them need to call a general meeting, and a simple majority in that meeting can remove any or all the directors. (There are special notice requirements, but only a simple majority is needed.)

    Comment


      #3
      The Directors of the RTM Company have power to get the list of leaseholders names and contact details from the Managing Agent. If your RTM has only one director , you should knock of a few doors and lobby support from other resident leaseholders to call a meeting and vote you in as a Director. You should aim to get 5% -10% members to call a meeting.

      Comment


        #4
        Thanks very much leaseholder64 and Gordon999, that's very useful.

        Is there somewhere I can go or contact for official confirmation of this, a governing body maybe, so we can take it to the management agent and insist they share the information?

        The directors are equally keen to have this information, but, like myself, they're fairly inexperienced. We need to strengthen our board and get organised and being able to communicate with the leaseholders seems like the sensible starting point.

        We're not looking to usurp anyone, just take control and hold the management agent to a reasonable high standard of service.

        Thanks again for your advice.

        Comment


          #5
          For the list of company members, write to the company at its registered office. If you are the registered office, you are committing a criminal offence, if you do not have the list of members. Any member of the company can inspect the list of members, there, free of charge. The authority for that is the 2006 Companies Act.

          Anyone can request to see the list of members, although they need to give a reason. The company cannot refuse without going to the courts and the courts would never support an application to refuse, in your case. The provision is there for shareholders in companies that attract violent protesters. Members can inspect free of charge.

          For the list of leaseholders, the key is the word Agent.. Agents act for you; they don't control you.

          Comment


            #6
            Any managing agent must belong to a government approved redress scheme. All redress schemes require the agent to have a complaints procedure.

            If they don't belong to s redress scheme, shop them to trading standards.

            If they do and don't have a complaints procedure, shop them to the redress scheme.

            Otherwise follow the complaints procedures, and if it fails, involve the redress scheme.

            Note this is is in relation to the management. Agents often take on the company secretary role, but that is different. I.e we are talking about leaseholder details, not member details.

            Comment


              #7
              The RTM company ( a company controlled by the leaseholders ) replaces the freeholder and any agent for administering the service charge account and has the legal power to demand service charge contributions from the leaseholders and perform the duties of the freeholder under the lease .The freeholder retains responsibility for collecting the ground rent and proceedings for starting forfeiture of lease. .

              Therefore the current managing agent is working for the RTM Company and has to follow the general instructions of the RTM Directors. Usually the managing agent is under a service contract for the first year and this contract continues subject to 90 days notice for termination served by either side.

              If the RTM was started up with the bare minimum number of leaseholders ( 51% ) it has to offer membership to get all the leaseholders to become members of the RTM.

              Comment


                #8
                Thanks again both leaseholder64 and Gordon999. Your insight is really useful and much appreciated.

                I had a call with the Leaseholder Advisory Service and they confirmed everything you've said. I think we're pretty well equipped now to approach the management agent in a constructive way and to hopefully loosen the strangle hold they over the RTM Company at the moment.

                Kind regards,

                Andy

                Comment


                  #9
                  s116 is the relevant clause of the Companies Act 2006. Note the information in (4) which must be provided when making the request


                  116 Rights to inspect and require copies

                  (1)The register and the index of members' names must be open to the inspection—

                  (a)of any member of the company without charge, and

                  (b)of any other person on payment of such fee as may be prescribed.

                  (2)Any person may require a copy of a company's register of members, or of any part of it, on payment of such fee as may be prescribed.

                  (3)A person seeking to exercise either of the rights conferred by this section must make a request to the company to that effect.

                  (4)The request must contain the following information—

                  (a)in the case of an individual, his name and address;

                  (b)in the case of an organisation, the name and address of an individual responsible for making the request on behalf of the organisation;

                  (c)the purpose for which the information is to be used; and

                  (d)whether the information will be disclosed to any other person, and if so—

                  (i)where that person is an individual, his name and address,

                  (ii)where that person is an organisation, the name and address of an individual responsible for receiving the information on its behalf, and

                  (iii)the purpose for which the information is to be used by that person.


                  Comment


                    #10
                    Originally posted by AndyStart View Post
                    Thanks again both leaseholder64 and Gordon999. Your insight is really useful and much appreciated.

                    I had a call with the Leaseholder Advisory Service and they confirmed everything you've said. I think we're pretty well equipped now to approach the management agent in a constructive way and to hopefully loosen the strangle hold they over the RTM Company at the moment.

                    Kind regards,

                    Andy
                    Is the management company the same as existing before the RTM was established ?

                    Comment


                      #11
                      Originally posted by Gordon999 View Post

                      Is the management company the same as existing before the RTM was established ?
                      Did you mean managing agent? An RTM replaces any existing management company!

                      Comment


                        #12
                        Thanks eagle2.

                        As a leaseholder, I'm a member of the RTM Company and so, based s116 that you kindly point out, I can request this information at any time.

                        I've also just noticed that the MD of the management agent is also the registered Secretary of the RTM company. So as a member I should be able to request the register of members from him at any time.

                        My worry is though, that this request would just supply me with the names and home addresses of each leaseholder/member. What we could really do with is the name of each leaseholder, the door number of the apartment(s) they own in the block and their email address. That way the RTM company can send out communications to all it's members without going through the management agent.

                        Also, does the fact that the owner of the management agent is the secretary of the RTM Co, mean they have some level of control over the RTM Co?

                        Is there anyway we can change that? Who gets to appoint or change the secretary?

                        [I'll google this as well as I'm sure it's easy enough information to find. It's just marrying up company legislation with RTM legislation that gets hard to know for sure.]

                        Comment


                          #13
                          Originally posted by Gordon999 View Post

                          Is the management company the same as existing before the RTM was established ?

                          I'm not sure of the exact history, but the Articles of Association say the RTM Company was formed in 2010.

                          The current management agent employed by the RTM Co was employed in 2014.

                          Comment


                            #14
                            ...the management agent are currently blocking the RTM Co from getting organised and operating effectively. Presumably so as to make it too complicated to communicate with each other and reduce any chance of us looking at other management agents.

                            My/our aim is not to get rid of the current management agent (although we should be able to so if we wished), but just to be able to get organised and communicate with each other so we can hold them to a higher standard of service. They're doing an ok job, but they set their plan for the year and refuse to deviate, regardless of what problems occur. Generally speaking, there's much more they can be doing to make the building a safe and well maintained place to live.

                            Comment


                              #15
                              You can't change the rules (articles of association) for an RTM. They are fixed by legislation: http://www.legislation.gov.uk/uksi/2.../schedule/made However there is nothing that I can find, in them, about procedures for appointing company secretaries, so the directors can do that.

                              Article 41 gives more rights than a normal member of a company would have to access company records, although a general meeting could impose restrictions, and information that is confidential might be withheld. Details on defaulters might well have to be considered confidential.

                              41.—(1) In addition to, and without derogation from, any right conferred by statute, any member shall have the right, on reasonable notice, at such time and place as shall be convenient to the company, to inspect, and to be provided with a copy of, any book, minute, document or accounting record of the company, upon payment of any reasonable charge for copying. Such rights shall be subject to any resolution of the company in general meeting.

                              (2) In the case of any book, minute, document or accounting record which the directors reasonably consider contains confidential material, the disclosure of which would be contrary to the interests of the company, to the exclusion or excision of such confidential material (the fact of such exclusion or excision being disclosed to the member), and to any other reasonable conditions that the directors may impose.

                              Comment

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