Breach of the Lease where does company law state they cant be directors in this case?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Breach of the Lease where does company law state they cant be directors in this case?

    Hello, Hope you all had a lovely Easter! My question is....can directors who are in breach of their own Lease and are not following the Lease be removed and what company or Landlord and Tenant law would support this?

    #2
    If a director of a big conglomerate is in breach of a lease for their private home, it is totally irrelevant. I believe you mean directors of an RTM or RMC, for which they are also leaseholders.

    This is not a matter of statute of law. Landlord and tenant law doesn't really address companies, except for RTMs, and Company Law does address leaseholds. They can only be removed if the company articles say they can be removed, and I suspect such clauses are rare, especially given that most leaseholders are probably in breach on minor issues.

    Some RMCs have a condition that the director must be a leaseholder (RTMs cannot). In that case successful forfeiture of lease would remove them as directors. If the breach was in relation to payment and the director was made bankrupt, that would also remove them form all directorships. As RTM directors don't have to be leaseholders, there will be a lot of them who could not breach the lease, anyway.

    I'm guessing this isn't really a new thread but part of a series trying to get round the basic problem that the only way of dealing with bad directors is for a majority of shareholders to vote them out and replace them with good ones.

    Comment


      #3
      No I mean Directors of a limited company acting on behalf of the company as its agents and the shareholders? The directors are using the company for their own benefit and not following the Lease, their argument is we own the freehold, we are the directors we do what the majority agree with, however when I try to point out we have a Lease and we need to follow the Lease they dont agree with me.

      Comment


        #4
        So this isn't an RMC or RTM, then?

        Company law says nothing about obeying leases. Companies can and do breach contracts, which is all a lease would amount to.

        Section 175 onwards of the 2006 Companies Act deals with conflicts of interest, although they can be overridden by the company's articles, for example to allow the sort of conflict of interest that is inevitable because of the nature of the company.

        If I understand section 178 correctly, they can only be enforced by civil actions taken by the company itself, so you will need control of the company first. Once you have control, it is unlikely that it will be worth suing the (ex-)directors.

        I cannot find any relevant criminal offences in schedule A.

        Back to RMCs and RTMs, unfortunately a lo lot of people seem to advise such companies that they can ignore the lease. Breaching a lease is not a criminal offence.

        Comment


          #5
          You need to enforce the lease against the company, not the directors. If it involves misuse of service charges, start with the FTT. Otherwise you will probably need to go to the County Court using the standard track and seek an injunction. If the directors breach an injunction the courts may decide to disqualify them.

          Comment


            #6
            Thank you leaseholder 64, I appreciate your help.

            Comment


              #7
              Breaching a lease is not a crime but it is breach of contract and contrary to common law. It depends on what the breach is as to what powers the FTT has.

              Comment


                #8
                Originally posted by Sarah B View Post
                Breaching a lease is not a crime but it is breach of contract and contrary to common law. It depends on what the breach is as to what powers the FTT has.
                Thank you Sarah..my directors breach as much as they like!

                Comment

                Latest Activity

                Collapse

                • Reply to Legal Action Against Landlord - Local Council
                  by Section20z
                  It may benefit older leases by removing "marriage value" from lease extensions but this would not help you _ and freeholders are also aware of imminent changes and may be more willing to negotiate prior.
                  Speak with a specialist like Homehold.org who will negotiate on your behalf,...
                  05-12-2021, 07:14 AM
                • Legal Action Against Landlord - Local Council
                  by Isaac1400
                  Hi,

                  Hoping someone can advise. I am leaseholder and the landlord is a local council. my property is a flat and there are about 55 flats spread out over 3 floors.

                  Now the problem is that over the years the council has failed to maintain the exterior and communal areas - including...
                  02-12-2021, 07:13 AM
                • Reply to How much can the freeholder charge for registering details of a sublet?
                  by eagle2
                  If the lease states that you may charge a registration fee of £10, that is the amount you may charge, you are not entitled to increase the charge unless the lease specifically allows an increase. Even then you would be limited to a reasonable amount and £100 would be considered to be unreasonable....
                  05-12-2021, 06:55 AM
                • How much can the freeholder charge for registering details of a sublet?
                  by Joubert
                  I am a director of a Freehold Company of a small block of 28 flats in a popular residential area.

                  Over the past few years the majority of flats have been purchased by investors who sublet the flats on ASTs.

                  Although the leases between the Freehold Company and the lessees are...
                  04-12-2021, 17:35 PM
                • Reply to Legal Action Against Landlord - Local Council
                  by andydd
                  I sued my freeholder for failure to maintain my driveway, judge was quite damning but I was only awarded £100 as hard to proof any loss BUT in your case it sounds you have exceptional worry over various incidents so yes you could sue and as I found out it was useful, I got costs too and its something...
                  04-12-2021, 21:19 PM
                • Reply to Dilapidated Flat
                  by scot22
                  Thanks all. It was a great price, significantly below market value, plus in further negotiations a reduction to pay for any further work. This was identified by a surveyor. She is not clueless.....
                  Artful in my research I read that can only claim for her ownership period.
                  It is all i...
                  04-12-2021, 19:33 PM
                • Dilapidated Flat
                  by scot22
                  In a block of 24, unfortunately one flat has become dilapidated. The new owner has bought cheaply. She is now demanding the Freeholder pays to refurbish it claiming they have been negligent. Is there a reasonable case ?
                  04-12-2021, 11:21 AM
                • Reply to Legal Action Against Landlord - Local Council
                  by Isaac1400
                  Thank you for bringing this to my attention. I have heard of this. In summary do you know if this would benefit those with older leases and not on the builds which have has issues with rising ground rent etc?...
                  04-12-2021, 19:09 PM
                • Reply to Dilapidated Flat
                  by Macromia
                  If a leaseholder can show that internal maintenance is required because of a freeholder's negligence (e.g. a failure to meet external maintenance obligations according to the terms of the lease), they will potentially have a claim against the freeholder and be entitled to expect the freeholder (the...
                  04-12-2021, 16:59 PM
                • Reply to Dilapidated Flat
                  by theartfullodger
                  The previous owner might have had a case. The new owner I think only for claims for problems during their ownership. But ianal.

                  Presumably she got a great price as it was so dilapidated
                  04-12-2021, 16:51 PM
                Working...
                X