Can MA be a RTM director?

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    You can complain to ARMA, I think that they have guidelines which their members are expected to follow and your complaint would be that it is unethical for the MA to have effective control over the RTM.


      Companies House are a registry, not a police force or court. They would only disqualify if instructed to by a court and would not prosecute for fraud.

      Many MAs are neither ARMA nor RICS members, so losing membership probably wouldn't be a major threat to the business.


        As the MA is a member of ARMA (#13), it may be worth complaining to them,

        Companies House will intervene on some occasions and it is worth contacting the breaches team. I doubt that they would wish to become involved in this matter, they are more likely to tell you to seek legal advice or act with other members to call an EGM to appoint new directors. That is probably your best route, the other members should become involved, it is their property and they should take an interest.


          just to close the loop
          Have contacted ARMA, and they are not interested really
          quote "We offer a programme of self-regulation that our member voluntarily sign up to assist them in staying up to date with legal requirements and best practice" end quote
          They suggest FTT, GOV LEASE advice, before they can consider accepting a complaint about ARMA member.

          The fact that anyone can become a director of RTM is a serious loophole in my opinion. Can easily imagine the current two directors appointing 20 of their say associate/family, and even if a willing RTM member (qualifying tenant) gets a sit at the board, they will be easily outvoted by the current clan of "directors". Who came up with such a nonsense regulation ?!

          I see that EGM is the only option here, but as I highlighted before in this defunct RTM where members are not interested will be difficult to find others to make up a 20% required quorum at the EGM.

          Anyway, will make a formal (letter form) offer to become a director to these two "directors", and will see what happens.

          Thanks all for all the information, and interest in the subject


            sorry guys, having been mulling it over a little bit more. I have a question.

            the model articles reads "any person who is willing to act as a director,", so how does it apply to a MA being a company ?
            I can see that the 2nd director is not a person but a managing agent company - please help me clarifying it more - so is it a person who is allowed to be a director or is it any "legal entity" including a managing agent LTD that is allowed to be a director?

            Who, from MA LTD is then representing MA as a director at any director's meeting ? an owner/director/board of directors of the MA LTD, a secretary, an employed cleaner, anyone remotely connected with the MA LTD ??!



              In legal terms a company is a person. If it wanted to restrict it to flesh and blood, it would have said natural person. Companies are required to have at least one natural person as a director.

              Basically that part of the articles is standard wording for all model articles, not just RTMs.


              There was a 2003 documentary, Corporation, that played on that point to further ague that companies are psychopaths.


                The RTM has still a problem with forming a quorum at directors’ meetings. The MA will often have a conflict of interest (budget, accounts, management fees) and will not be allowed to be considered for quorum or voting purposes under Article 19(1).

                Under Article 24, the MA will not be allowed to receive any remuneration without the consent of the members in a general meeting. The members may be able to argue that the MA is only entitled to receive its expenses in accordance with Article 25.


                  leaseholder64 - apologies for not understanding what "a person" means initially, and thanks for clarifying. English is not my native language after all ...still, whoever came up with this "Any person who is willing to act as a director" rule, and had not considered a conflict of interest in a form of an MA should buy a flat in a block where an MA is a controlling director (other words come to mind too!!

                  eagle2 - thanks a lot for these pointers. A24 sounds really interesting here. Seems that any invoices that are paid to MA (who are the director) break that rule! no managing agent charges then (4k saved). I realize it is a wishful thinking, but is breaking any of these rules a criminal act? or is it just an administrative offence, or worse nothing really ??



                    Depending on the other charges, I would be tempted to apply to the FTT on the grounds that the management fee is unreasonable. The elderly lady will not wish to be involved and the more that the MA acts as principal rather than as an agent, the more untenable his position becomes.

                    An adverse ruling by the FTT should be sufficient for the MA to resign. Even the threat of an adverse ruling may be sufficient.

                    Apart from that, your best option remains to get the other members involved and call a general meeting to appoint directors and remove the MA.


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