RMC or RTM?

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    RMC or RTM?

    We are a self govering RMC with internal feuding. I have asked around and believe I have enough support to set up a RTM. All the lessees including the difficult ones would be entitled to join, but if the political tide turned, could the RMC take control of the RTM?

    #2
    The RTM has to be supported by 51% or more leaseholders. Presumably the Directors of the RMC will be leaseholders who are not directors of the RMC .

    RTM has the legal powers to take over the service charge administration from the RMC and Freeholder.

    Comment


      #3
      Is it possible for a director of one to be a director of the other?

      Comment


        #4
        Is it not better to try to resolve your differences? They are not going to magically disappear with an RTM.

        Comment


          #5
          Completely agree, but easier said than done.

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            #6
            Perhaps you need an independent person to chair a meeting and persuade everyone that it is in your best interests to reach some form of agreement in order to move forward. Do you know any other properties nearby where perhaps a director would be willing to assist?

            Comment


              #7
              We have made many attempts to settle, but without success.

              Comment


                #8
                This would be a weird thing to do and, as others have said, I don't think it will solve your problems, and may well make them worse.

                Directors can be directors of both companies.

                Comment


                  #9
                  In what way is it weird and how could it make matters worse?

                  Comment


                    #10
                    Originally posted by Lilliebet View Post
                    We are a self govering RMC with internal feuding. I have asked around and believe I have enough support to set up a RTM. All the lessees including the difficult ones would be entitled to join, but if the political tide turned, could the RMC take control of the RTM?
                    I cannot see any point in doing this whatsoever. In practical terms there is no significant difference between an RMC and an RTM. The same individuals will be involved. A waste of time and money.

                    Comment


                      #11
                      If you decide to set up the RTM company and invite the other leaseholders to become members to support the RTM claim :

                      you would NOT allow any of the existing directors of the RMC to become Directors of the RTM ,

                      And your RTM Directors would appoint an external Managing Agent to run the service charge account to the standard of RICS Residential Management Code.

                      Comment


                        #12
                        There is nothing in law to prevent directors of a RMC from becoming directors of a RTM?

                        Comment


                          #13
                          Originally posted by Lilliebet View Post
                          There is nothing in law to prevent directors of a RMC from becoming directors of a RTM?
                          The RTM Directors would quietly enroll membership from about 60% of leaseholders ( in your block of flats ) but exclude the Directors of the RMC and any feuding supporters.

                          You would canvass the leaseholders and find 60% willing members to join the RTM company before you pay out any money to incorporate the "RTM company".

                          The minimum requirement is a "majority of leaseholders " ( meaning not less than 51% ) before the RTM can qualify and claim of right to manage from RMC and freeholder. You can expect a few may drop out if convinced by the RMC.

                          The other way is for 1 leaseholder to apply to FTT, to appoint an independent managing agent for the service charge account.

                          Comment


                            #14
                            The suggestion at the end is very useful. Is the application process expensive?

                            The more I think about the RTM as a solution, the more I am put off. For example, if the balance of power tipped in favour of the RMC over time, would the RTM not be acting beyond the scope of its powers?

                            Comment


                              #15
                              So long as the RTM has 51% or more members and appoints a managing agent on one year service contract , the RMC has no administrative function and no right to demand service charge from the leaseholders..

                              The RTM Leaseholders can cut off the annual cost of maintaining the RMC and it will be dissolved. There is no balance of power in favour of the RMC if there is no funding for the RMC.

                              Comment

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