freeholder owns 2 of 6 flats- can he claim "Person of Significant Control" if we RTM?

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    freeholder owns 2 of 6 flats- can he claim "Person of Significant Control" if we RTM?

    He's a pain/expensive - and we're looking to go down the Right To Manage route if we can..

    ...however - we're not sure if (as he owns 2/6 of the flats) whether he can then push us around as a "Person of Significant Control" or not.

    any opinion greatly appreciated.

    PSC is not something you claim but rather something you must declare. The concept exists to warn people that one person may have a lot of influence over the operation of a company. It doens't give that person any rights they didn't already have.


      The person appears to have 2/7th of the voting rights, so the company must declare them to be a PSC. Whether they can push you around depends on whether other people attend, or appoint proxies for, general meetings. For a typical, maturing, RTM, I would say that if the wanted to, they could probably control the company, particularly if the other leaseholders are absentee landlords, because of apathy by other members. For a newly formed RTM, there may be more enthusiasm.


        Sorry, missed that they were the freeholder as well. That' 3/7, assuming all the flats are on long leases. I haven't read the rules closely enough to be sure of the position for the two flats being on short leases.


          The purpose of this requirement is to make the ownership and control of companies more transparent and to prevent money laundering and tax evasion. It will make no difference to you - it's just something that has to be declared.

          Here is the guide to see if you qualify - he of course could opt to be part of the RTM company in which case nothing changes unless you have a majority




              Landlord has 2/6 votes.



                More specifically

                I missed that the landlord only gets a vote as landlord if they don't have one for a flat.


                  You would need 4 flats out of 6 to support RTM process and proceed to claim RTM of the building ( without support by LL's 2 flats) .

                  You would ensure that the 4 flats appoint the first Directors of the RTM ( and keep the LL from becoming a director and bringing all the pain into the director's meeting ) .


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