Director refusing to hand over accounts

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    Director refusing to hand over accounts

    Hi all, we are three directors, its the company that holds title to the freehold of the land where our homes are. The longer serving Director is refusing to allow us to see the accounts. He files them at companies house with £1 value. However another Director feels there is a value when the Freehold got transferred some years ago. ITs a dormont company, also each year the accounts are late with warnings of being struck off.

    We want access to the accounts, get them audited and then uploaded to CH. We wrote to the Director and its been ignored.

    Any ideas on how to get this sorted?

    We tried at each AGM but the Director gets "shirty" and and argues there is nothing wrong and takes it personnel, the previous AGM was abandoned due to arguing and running out of time.

    Thanks.

    James

    #2
    For starters you can get them free of charge from companies house online. Just look.

    Comment


      #3
      You don't want to get them audited. That will probably cost you over £1,000!

      It is quite possible the book value of the freehold is £1 (actually 50p in our case), the estate was built to be transferred to an RMC once the first leases were sold.

      It is a criminal offence to send the accounts to Companies House before sending them to the members. However, those accounts generally are of no use to the members; what they need are the service charge accounts. Nonetheless, you could try getting the breaches team at Companies House involved.

      It's likely that the company has to have at least two directors, although, since 2006, one has been possible.

      The members can remove the director by a simple majority vote, and can call an EGM to carry out that vote with only 5% of the voting rights.

      Comment


        #4
        Originally posted by leaseholder64 View Post
        It is a criminal offence to send the accounts to Companies House before sending them to the members. However, those accounts generally are of no use to the members; what they need are the service charge accounts. Nonetheless, you could try getting the breaches team at Companies House involved.
        Breaches team not interested in this, same goes for issuing of directors report s415 CA 2006, may be cited as a criminal offence, however who is the authority that is able to pursue this?

        Having raised this through the ombudsman process previously only to be told that the accounts were available at CH where they could have been downloaded free of charge, through the beta service, which now appears to be an ongoing service.

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          #5
          As the Company is regarded as dormant, the statutory accounts filed at Companies House will be meaningless and there is no point in obtaining an audit of those accounts.

          I suspect that you want to see the service charge accounts and rather than have those audited, I would ask to inspect the accounting records, which you are entitled to inspect as a director and as a leaseholder and possibly as a member depending on the Articles of Association.

          Comment


            #6
            It's not clear from this thread how many flats there are altogether. However it is highly dangerous to be a Director of a company where you know something is being hidden from you. If things go badly wrong (like the company gets struck off for breaches or late filing) you may well be held personally liable. You need to write a strongly worded letter to your fellow directors about responsibility of a director.

            Have all lessees been informed of the risks they face? They may need that information when they vote.

            Comment


              #7
              If the director files accounts late enough times in a row, they could get disqualified as a director.

              Comment


                #8
                Originally posted by fos333 View Post

                Breaches team not interested in this, same goes for issuing of directors report s415 CA 2006, may be cited as a criminal offence, however who is the authority that is able to pursue this?

                Having raised this through the ombudsman process previously only to be told that the accounts were available at CH where they could have been downloaded free of charge, through the beta service, which now appears to be an ongoing service.
                If the company is trading, the accounts that can be downloaded from companies house only contain the balance sheet, whereas those that have to be distributed to members have to include profit and loss information, so the web site accounts are not a suitable stand-in.

                Comment


                  #9
                  If dormant accounts are being filed every year at Companies House, it means there is no ground rent collected from the leaseholders .

                  Also if freehold company has no rental income, then the communal grounds ( including gardens and parking spaces) have no revenue and have little value.

                  Some future income may arise from charging for lease extension after the leases fall below 80 years.

                  Comment

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